Coinbase adds USDC lending with Morpho on Base

By Matt Brienen

Published: 2025-09-18T20:50:28+00:00

Coinbase is introducing a new feature that lets USDC holders lend their stablecoins on-chain through the Morpho protocol, integrated on its Base layer-2 network. Users in the U.S. (excluding New York), Bermuda, and select international markets will be able to earn yields up to **10.8%** by routing their USDC into DeFi lending pools managed by Steakhouse Financial.

The setup involves smart-contract wallets that allocate liquidity across multiple borrowing markets in order to optimize returns, while still allowing users to withdraw funds whenever liquidity permits. Compared to Coinbase’s existing USDC Rewards program, which offers a lower yield, this on-chain lending option gives holders a way to significantly increase income from their stablecoin holdings without leaving Coinbase’s interface.