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- Coinbase launches USDC on-chain lending with yields up to 10.8%, linked to Morpho on the Base blockchain.
- Deposited USDC flows into Morpho vaults, auto-managed for optimized returns, with instant accrual and withdrawals.
- Service doubles returns over USDC Rewards, giving retail users DeFi yields without complex wallets or protocols.
Coinbase has introduced on-chain lending with USD Coin (USDC), which enhances its products in the field of decentralized finance. The new service enables users to receive yields of up to 10.8% using the Coinbase app. The integration is linked to Morpho, a lending protocol that is based on Base, the Layer 2 blockchain of Coinbase. The goal of the company is to achieve improved returns with simplicity on the interface.
Coinbase automatically creates a wallet of a smart contract whenever users deposit USDC. The system transfers the funds to Morpho vaults operated by Steakhouse Financial. These vaults spread liquidity across different markets in order to maximize yields. The interest is calculated upon deposit, and the withdrawals can be made any time provided that there is liquidity.
Higher Yields and Wider Regional Rollout
The service is better than the current USDC Rewards program of Coinbase, which has up to 4.5% APY when holding stablecoins. Coinbase offers rewards more than twice by connecting to the markets of Morpho. Users are able to get greater returns on DeFi without using complicated wallets or protocols. The exchange makes the process smooth and well-known.
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The feature is presently operational in some regions. The service is available to users in the United States except in the state of New York. It is also found in Bermuda, Hong Kong, the United Arab Emirates, New Zealand, the Philippines, Taiwan, and South Korea. Coinbase affirmed that it will roll out to more countries in the next few weeks.
Coinbase Taps Morpho Growth and Expands USDC Use Cases
Morpho has over $8 billion in total locked value, indicating a high level of decentralized lending demand. Coinbase bridges the retail investor space by being linked to this protocol. Customers become exposed to on-chain yields without technical limitations. The integration introduces DeFi opportunities to the Coinbase app.
Coinbase has continuously increased its operations based on USDC across 2025. In January, the company launched Bitcoin-secured USDC loans and increased the limit to $1 million. It also incorporated USDC in derivatives, NFTs, and AI-based payments. This approach is a component of a so-called stablecoin adoption flywheel created by Coinbase.
USDC is among the most liquid and popular stablecoins in the world, and its circulation is more than $73 billion. The on-chain lending service introduces a new application of Coinbase and reinforces its position in digital finance. The exchange keeps the stablecoins as a baseline of mainstream crypto adoption.
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