Coinbase, a major cryptocurrency exchange, has integrated with the Morpho protocol to offer its users on-chain DeFi lending directly through its app. This new feature allows users to earn a competitive yield of up to 10.8% APY on their USDC holdings.
This move highlights Coinbase's strategy to act as a bridge between traditional fintech and the decentralized finance world. By blending a user-friendly interface with powerful DeFi infrastructure, Coinbase aims to make sophisticated financial products more accessible to a wider audience. The company hopes this will boost user engagement and expand its role as a central financial hub.
According to the official Morpho blog, this is one of the largest consumer-facing integrations of DeFi technology to date, demonstrating a growing trend where fintechs and decentralized protocols collaborate. This model, often referred to as the “DeFi Mullet,” combines the simple front-end of a traditional platform with the complex, robust back-end of decentralized finance.
The integration is expected to encourage broader adoption of DeFi, potentially influencing future regulatory discussions as institutions seek clear guidelines to leverage decentralized structures while remaining compliant. Meanwhile, USDC remains stable with a market cap of $74.31 billion, indicating a solid foundation for this new lending service.
September 2025, Cryptoniteuae