Quick Breakdown:
- Coinbase introduces USDC lending with yields up to 10.8% via Morpho and Steakhouse Financial on Base.
- Lending allows users to earn passive income directly within the Coinbase app.
- Rollout begins in the U.S. (excluding NY State), Bermuda, and additional countries.
Coinbase has introduced a new way for users to earn higher rewards on their USDC holdings, unveiling an onchain lending integration powered by Morpho and Steakhouse Financial on Base. The product, announced September 18, 2025, will roll out in the U.S. (excluding New York), Bermuda and select international markets in the coming weeks.
The feature allows users to lend USDC directly through their Coinbase app while accessing DeFi protocols without leaving the platform. At launch, yields are advertised at up to 10.8%, positioning Coinbase as one of the largest gateways between traditional retail investors and decentralized finance.
There’s a new way to grow your bags.
Lend your USDC, earn up to 10.8% currently.
DeFi lending is rolling out on Coinbase. pic.twitter.com/G3KE0aD3Eb
— Coinbase 🛡️ (@coinbase) September 18, 2025
How the integration works
Once users deposit USDC, Coinbase automatically creates a smart contract wallet that connects to the Morpho lending protocol. Steakhouse Financial curates onchain vaults where deposits are distributed across multiple lending markets to optimize returns.
Funds remain liquid, meaning users can withdraw at any time, subject to available liquidity. Coinbase emphasized that while the system relies on cutting-edge blockchain infrastructure, the app experience remains simple, secure and familiar for users who may not be accustomed to navigating DeFi platforms.
USDC adoption and growing yield options
USDC, with a circulating supply exceeding $73.6 billion, is one of the most widely used stablecoins in the crypto market, backed 1:1 by the U.S. dollar. Coinbase has already offered passive rewards on USDC holdings—4.1% APY, or 4.5% for Coinbase One members, but the new lending option significantly expands earning potential.
By connecting directly with onchain liquidity, Coinbase is positioning USDC lending as a way for retail investors to access higher-yield strategies typically dominated by crypto-native users. The exchange said the rollout reflects growing demand for stablecoin-based opportunities and underscores its role in bridging centralized and decentralized finance.
Meanwhile, Coinbase has completed its acquisition of Deribit, the world’s leading crypto options exchange. Deribit, which handled more than $1 trillion in trades last year and currently oversees about $60 billion in open interest, reported record activity in July 2025.
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