US-listed cryptocurrency exchange Coinbase (COIN) has rolled an USDC loan product that allows its customers to earn dividends directly from the exchange app and elaborate on its integration with decentralized financing (Defi).
The feature is driven by Morpho, a protocol that routes deposits through curated “vaults” administered by steakhouse financial, according to a blog post on Thursday
When users deposit USDC, their funds are lent to borrowers-inclusive those who are already tapping Coinbases crypto-supported loans secured by Bitcoin. The interest borrowers pay generate returns for depositors who can withdraw at any time without lockups.
Coinbase said the setup creates a flywheel effect where its lending and borrowing products amplify each other. The launch follows more than $ 900 million in loans derived from Coinbases crypto-supported loan service. Together, the two offers form what the company calls its first complete onchain loan and borrowing of ecosystem.
By outsourcing backend to Morpho’s smart contracts while holding Coinbase -Interface, the company is aiming for what it calls the “Defi Mullet” approach: a well -known fintech user experience, powered by open, decentralized infrastructure in the back.
For users, the product offers a lighter way into decentralized lending markets without leaving Coinbase’s platform. For Morpho, it emphasizes the argument that the future of financing will be built on open networks, but is gained access to through trusted gateways.
