Catenaa, Monday, July 07, 2025-Gelato, a leading Web3 developer cloud platform, has partnered with Morpho, a decentralized lending protocol on Ethereum, to launch Embedded Crypto-Backed Loans.
This new service enables wallets, brokers, and fintech apps to offer users instant, non-custodial stablecoin loans, like USDC, using crypto assets as collateral with a seamless Web2-style experience.
The integration combines Gelato’s Smart Wallet SDK with Morpho’s decentralized lending markets to deliver a fully onchain borrowing flow that platforms can embed within days.
Users can create wallets with one click via email, social login, or passkeys, then borrow stablecoins without credit checks. Loans are governed entirely by smart contracts, ensuring security and decentralization.
Key features include gasless transactions on over 50 EVM-compatible chains, EIP-7702 powered smart wallet accounts, and embedded user experience with full brand control.
Morpho’s proven infrastructure manages more than $6.5 billion in total value locked, while Gelato’s tools support account abstraction, onboarding, and gas sponsorship.
Paul Frambot, CEO of Morpho Labs, said the partnership enables a self-custodial loan experience that balances security with usability. Gelato plans to roll out enhanced security and recovery options later this year, including multi-signer two-factor approvals and onchain recovery linked to email or social logins.
Embedded Crypto-Backed Loans are currently in beta on Polygon, Arbitrum, Optimism, and Scroll, with plans to expand to other chains soon.
For demos and more information, visit morpho.org and gelato.cloud.
Contact: Matthew Hammond, [press@gelato.digital](mailto:press@gelato.digital)
