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Coinbase Unveils USDC Lending via Morpho, Strengthening DeFi Integration

Coinbase has launched a USDC lending product, enhancing its integration within the decentralized finance (DeFi) space.

This feature is powered by Morpho, which directs deposits into managed “vaults” maintained by Steakhouse Financial.

Users can deposit USDC and have their funds lent out to borrowers, including those using Coinbase’s crypto-backed loans.

The interest paid by borrowers generates returns for depositors, who enjoy the flexibility of withdrawing their funds without lockup periods.

The implementation creates a synergistic effect where lending and borrowing services complement each other.

This launch follows Coinbase's successful origination of over $900 million in loans through its crypto-backed loan service.

By utilizing Morpho’s backend while retaining its user-friendly interface, Coinbase adopts a “DeFi mullet” approach—professional on the front, decentralized at the back.

This new offering provides a convenient pathway for users to engage in decentralized lending without leaving Coinbase’s ecosystem.

In doing so, it reinforces the notion that future financial services will leverage open networks while ensuring user trust.

Morpho's integration exemplifies the direction in which the finance sector is heading, marrying familiar interfaces with robust decentralized frameworks.