Coinbase Integrates DeFi Lending With Morpho

Coinbase has integrated Morpho in its app, enabling users to earn up to 10.8% APY on USDC through on-chain DeFi lending, expanding DeFi accessibility.

This integration marks a significant step in bringing retail participation to decentralized finance, providing users a seamless entry to DeFi markets directly from the Coinbase platform.

Coinbase Offers Up to 10.8% APY on USDC

Coinbase has launched a new feature integrating the Morpho protocol, allowing users to participate in on-chain DeFi lending via its app. Users can now earn up to 10.8% annual percentage yield (APY) on USDC deposits, marking their first chance to engage in permissionless DeFi lending directly on the platform. This initiative leverages infrastructure from Morpho, one of the largest decentralized lending protocols, to facilitate these yields.

This development signals a pivot in Coinbase’s strategy, bridging traditional finance with decentralized technologies. Users benefit from directly accessible DeFi lending without needing external platforms, reflecting a growing trend among exchanges to integrate DeFi features. “The future of finance is on-chain, but accessed through trusted interfaces,” said Brian Armstrong, CEO of Coinbase. As decentralized yielding options become more popular, this could position Coinbase as a frontrunner in retail DeFi offerings.

Coinbase’s DeFi Move Draws Community Attention

Did you know? Coinbase’s move to integrate DeFi lending marks a shift for U.S. exchanges, previous giants like Binance have implemented similar features, but not directly via a public firm’s main interface.

According to CoinMarketCap, USDC holds a stable price of $1.00, with a market cap of $74.15 billion and a trading volume of $12.43 billion. Recent statistics highlight a 1.84% market dominance and a 2.51% decrease in daily value as of September 2025.

The Coincu research team expects Coinbase’s initiative, which aligns with emerging financial applications, to attract both retail and institutional investors due to the novel inclusion of DeFi elements. As adoption grows, regulatory scrutiny is likely to increase, spurring demand for transparent, secure offerings.