Coinbase Launches USDC Lending With Morpho Offering Up to 10.8% Yields

• Coinbase’s new USDC lending with Morpho lets users earn up to 10.8% yearly.
• USDC deposits go into vaults for lending, with no lockups and instant withdrawals.
• Paired with Bitcoin-backed loans worth $900 million, this setup blends Coinbase’s app with Morpho’s smart contracts for easy, safe investing.

Coinbase, a top US crypto exchange, just launched a new way for users to earn money on their USDC stablecoin by teaming up with DeFi platform Morpho. This lets customers make returns without leaving the Coinbase app.

New Lending Opportunities for USDC Holders

The exchange shared that USDC deposits go into special vaults managed by Steakhouse Financial using Morpho’s smart contracts.

When you put in USDC, it’s lent out to borrowers, including those using Coinbase’s crypto backed loans. You earn interest from what borrowers pay, with no lockup periods, instant withdrawals, and interest that adds up automatically.

As of September 18, 2025, users can earn up to 10.8% yearly on USDC, with standard rates at 4.1% or 4.5% for Coinbase One members. This is available in the US, except New York, plus Bermuda and other countries.

Coinbase also tied this to its Bitcoin-backed loan service, started earlier this year, which has already given out $900 million. Users can borrow up to $100,000 in USDC using their bitcoin as collateral, with flexible repayments and changing interest rates.

There’s no need to sell bitcoin, but loans can be closed if the collateral’s value drops.

They call this setup the DeFi mullet, blending Coinbase’s easy app with Morpho’s open smart contracts. It’s a clean system where folks can lend and borrow in one spot, growing their money easily while keeping things safe and flexible.