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Coinbase has expanded onchain financial accessibility by integrating Morpho on Base, enabling seamless borrowing and lending within its ecosystem. This collaboration allows users to unlock the value of their crypto assets without selling them, advancing Coinbase’s broader mission of fostering economic freedom for all.



The Opportunity


As the world’s leading regulated crypto exchange, Coinbase serves over 100 million users and continues to evolve into an all-encompassing financial platform. The Coinbase App now offers a comprehensive suite of products, including spot trading, perpetual futures, staking, and secure custody.


In pursuit of becoming a complete one-stop shop for digital financial services, Coinbase identified the need to expand into consumer-facing lending and borrowing solutions for its global user base.


To achieve this efficiently and securely, Coinbase partnered with Morpho, whose infrastructure enables faster, lower-cost, and more transparent financial products that rival traditional systems while providing users with a superior experience.



The Solution


Coinbase leveraged Morpho’s onchain infrastructure to launch Coinbase Loans on Base, the Ethereum Layer 2 network incubated by Coinbase. This approach allowed Coinbase to build advanced lending products without the need to develop proprietary backend systems from the ground up.


By using Morpho’s unified backend, Coinbase retained full control over the user experience—from product distribution within the Coinbase App to defining market parameters such as the cbBTC/USDC pair—without any external influence from Morpho or third-party participants.


This integration provided immediate access to deep liquidity from the broader Morpho ecosystem, allowing Coinbase to offer competitive borrowing rates from day one. Users could borrow against BTC holdings at attractive terms without Coinbase having to originate its own loan book.


Transparency was another key advantage. By building onchain, all borrowing and lending activity is verifiable via Base Scan, giving users real-time insight into asset custody and ensuring that collateral is never rehypothecated—an essential factor for building user trust.


Coinbase later extended the integration to include lending functionality, enabling customers to earn competitive yields by providing liquidity to borrowers within the same ecosystem.

@Morpho Labs 🦋

User Experience and Infrastructure


Coinbase’s objective was to deliver a simplified user experience consistent with its existing app. To abstract away blockchain complexities, Coinbase implemented several supporting tools:




Coinbase Smart Wallet for onchain transactions


Paymaster allowing gas fees to be paid in cbBTC


Passkeys to streamline key management and transaction signing


Magic Spend for seamless transfers between Coinbase accounts and smart wallets




From the user perspective, the process remains straightforward: deposits generate immediate rewards, while behind the scenes, funds flow into Morpho Vaults curated by Steakhouse Financial and are allocated to markets like cbBTC/USDC. Borrowers utilize these funds, and the resulting interest is distributed to lenders on Coinbase.
$MORPHO






The Results


Since its full rollout in April 2025, Coinbase’s crypto-backed loan program has originated over $950 million in USDC loans, with $700 million currently active. Over $1.4 billion worth of cbBTC is now collateralized on Morpho, supporting BTC-backed USDC loans at rates as low as 6%—significantly below comparable market offerings.


By launching both borrowing and lending onchain through the Coinbase App, Coinbase has created a comprehensive financial ecosystem that keeps user assets within its platform. The lending and borrowing markets are interconnected—users providing liquidity in USDC directly fuel the borrowing market, creating organic demand and more efficient pricing without intermediaries.


This dynamic has generated a flywheel effect for engagement: users actively manage their positions, utilize borrowed funds for trading or real-world applications, and increase overall participation across Coinbase’s ecosystem.



Industry Impact


Coinbase’s integration with Morpho represents the largest consumer-facing fintech deployment of any DeFi infrastructure to date. It sets a new benchmark for the emerging model of “DeFi Mullets”—fintech interfaces on the front end powered by decentralized infrastructure behind the scenes.


By combining regulatory compliance, seamless user experience, and DeFi transparency, Coinbase and Morpho are demonstrating how mainstream fintechs can bridge traditional finance with decentralized innovation—ushering in a new era of accessible, onchain financial services.#Morpho

The Challenge

Ledger, the global leader in self-custody solutions with over seven million devices sold, offers its users a secure way to buy, sell, swap, and stake digital assets through the Ledger Live app. However, until recently, the platform lacked a native DeFi earning feature.


To strengthen its self-custodial philosophy and generate recurring revenue without exposing users to counterparty risk, Ledger sought to integrate a truly decentralized earning solution. While the platform already offered several third-party services, many involved varying degrees of custodial or counterparty exposure—contradicting Ledger’s commitment to user sovereignty.
$MORPHO





The Solution

Ledger addressed this by integrating Morpho into its Earn dashboard as the default DeFi solution for USDC and USDT, in partnership with Kiln’s DeFi infrastructure. Kiln provides an enterprise-grade integration layer and monetization toolkit, enabling Ledger to implement compliance frameworks while offering users access to Morpho’s onchain yield opportunities.


Through this integration, users can now earn yield on their stablecoins directly within the Ledger Live app, without leaving the secure Ledger ecosystem. This approach simplifies access to DeFi yields, especially for users who may be new to decentralized finance.


Initially launched with USDC and USDT on Ethereum, Ledger plans to expand this offering by integrating additional Morpho Vaults across multiple chains and assets, further diversifying yield opportunities.


The Results

With this integration, Ledger Live is evolving into a fully featured personal finance hub—offering buying, selling, swapping, and earning functionalities within a single secure interface.#Morpho


By embedding Morpho-powered onchain yields, Ledger Live empowers users to move beyond the traditional “buy and hold” approach. Users can now seamlessly purchase crypto, interact with DeFi protocols, swap tokens, and earn yield—all within the same trusted environment safeguarded by Ledger’s hardware security.


This addition has significantly increased user engagement and platform stickiness, contributing to Ledger’s recurring revenue. Each user action—purchasing crypto, swapping assets, or depositing into Morpho—creates new monetization opportunities for Ledger. Moreover, in-app banners and notifications have enhanced user reactivation and upselling potential.


Since the integration launched in May, Ledger Live users have deposited over $100 million in USDC and USDT, actively earning onchain yield through Morpho—secured by Ledger’s trusted infrastructure. @Morpho Labs 🦋