Key Takeaways:
- Coinbase has integrated Morpho into its app, enabling users to earn up to 10.8% APY on USDC through DeFi lending.
- The integration simplifies access to decentralized lending, with vaults managed by Steakhouse Financial.
- Morpho’s total value locked has surged to $8.3 billion, reflecting growing institutional and retail demand for DeFi platforms.
Coinbase has introduced a major new feature that enables users to earn yields on their USDC holdings through decentralized finance (DeFi).
The exchange integrated the Morpho lending protocol, with vaults managed by Steakhouse Financial, directly into the Coinbase app.
Morpho now powers USDC lending on @coinbase.
— Morpho 🦋 (@MorphoLabs) September 18, 2025
Millions of users can earn more on USDC with sustainable yield backed by global borrowing demand — all within the Coinbase App.
Curated by @SteakhouseFi. Powered by Morpho. pic.twitter.com/eGAWanSYoZ
This allows users to lend USDC without external platforms or wallets.
Previously, Coinbase rewarded USDC holders with up to 4.5% APY, but with Morpho integration, yields can reach as high as 10.8% as of Wednesday.
Coinbase emphasized that Morpho is the only protocol currently available through this feature and cautioned users to review lending risks outlined in the app.
Morpho is among the largest DeFi lending protocols, holding over $8.3 billion in total value locked (TVL).
Its sharp rise reflects the growing appetite for onchain lending, which has surged in 2025.
A survey showed that 40% of Americans would consider using DeFi platforms if crypto legislation is passed.
On the institutional side, DeFi lending has grown 72% this year, with protocols like Morpho seeing strong adoption.
Coinbase’s move underscores the mainstream push into DeFi and stablecoin-based yields.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: