Coinbase, a top US crypto exchange, just launched a new way for users to earn money on their USDC stablecoin by teaming up with DeFi platform Morpho. This lets customers make returns without leaving the Coinbase app.
The exchange shared that USDC deposits go into special vaults managed by Steakhouse Financial using Morpho’s smart contracts.
When you put in USDC, it’s lent out to borrowers, including those using Coinbase’s crypto backed loans. You earn interest from what borrowers pay, with no lockup periods, instant withdrawals, and interest that adds up automatically.
As of September 18, 2025, users can earn up to 10.8% yearly on USDC, with standard rates at 4.1% or 4.5% for Coinbase One members. This is available in the US, except New York, plus Bermuda and other countries.
There’s a new way to grow your bags.
— Coinbase
Lend your USDC, earn up to 10.8% currently.
DeFi lending is rolling out on Coinbase. pic.twitter.com/G3KE0aD3Eb(@coinbase) September 18, 2025
Coinbase also tied this to its Bitcoin-backed loan service, started earlier this year, which has already given out $900 million. Users can borrow up to $100,000 in USDC using their bitcoin as collateral, with flexible repayments and changing interest rates.
There’s no need to sell bitcoin, but loans can be closed if the collateral’s value drops.
They call this setup the DeFi mullet, blending Coinbase’s easy app with Morpho’s open smart contracts. It’s a clean system where folks can lend and borrow in one spot, growing their money easily while keeping things safe and flexible.
Also read: XRP Price Prediction: XRP ETF Smashes Records on CBOE Debut – Is Ripple Ready to Flip BTC in Flows?
