Catenaa, Monday, September 22, 2025- Coinbase has introduced an onchain lending service for USDC holders, offering yields as high as 10.8%. The program uses decentralized finance protocols but is presented through the Coinbase app to appeal to mainstream users.
The feature is powered by Morpho, a DeFi lending platform, with allocations managed by Steakhouse Financial on Base, Coinbase’s Ethereum Layer 2 network. When users deposit USDC, Coinbase creates a smart contract wallet that routes funds across pools to maximize returns. Earnings begin immediately and withdrawals are possible at any time, subject to liquidity.
Coinbase emphasized that this new offering is separate from its “USDC Rewards” program, which pays up to 4.5% APY and is funded directly by the company.
By contrast, onchain lending involves customer assets being deployed in lending markets, with returns generated from borrowing activity.
The rollout began Thursday for selected users, with a broader release planned in the U.S. outside New York, as well as in Bermuda, Hong Kong, the UAE, New Zealand, the Philippines, Taiwan, and South Korea. Coinbase said the launch reflects its push to connect customers more directly to onchain opportunities.
This marks Coinbase’s latest collaboration with Morpho. Earlier this year, it enabled Bitcoin-backed onchain loans through the protocol, allowing borrowing of up to $1 million in USDC. Last month, the company also launched its second Stablecoin Bootstrap Fund to strengthen liquidity across DeFi markets.
