Earn 10.8%: Coinbase Expands USDC Onchain Lending to 9 Markets

Coinbase has launched onchain lending for USDC, allowing users to earn up to 10.8% interest directly in the app. The feature, announced...

Written by: Arslan Butt • Friday, September 19, 2025 • 1 min read

• Last updated: Friday, September 19, 2025

Quick overview

Coinbase has launched onchain lending for USDC, offering users up to 10.8% interest directly in the app.
The feature integrates with the Morpho lending protocol on Coinbase's Layer-2 network, Base, allowing for easy access to DeFi yields.
Users can deposit USDC and withdraw at any time, enhancing liquidity and accessibility for retail investors.
This initiative is part of Coinbase's broader strategy to expand USDC utility and promote mainstream adoption of crypto finance.

Coinbase has launched onchain lending for USDC, allowing users to earn up to 10.8% interest directly in the app. The feature, announced September 18, integrates with the Morpho lending protocol on Base, Coinbase’s Layer-2 network. When you deposit USDC, a smart contract wallet is created to route funds into Morpho vaults curated by Steakhouse Financial.

Interest accrues immediately and you can withdraw at any time as long as there’s liquidity. This means retail investors can access DeFi yields without having to navigate complex protocols, making high yield opportunities more accessible.

Deposit method: USDC via Coinbase app
Yield: Up to 10.8% APY
Liquidity: Withdrawable anytime

More USDC Utility

This is in addition to our existing USDC Rewards program which offers up to 4.5% APY for holding USDC. By connecting to permissionless markets through Morpho, you can now get more than double the returns while staying in the Coinbase app.

🔥 LATEST: COINBASE INTRODUCES A FEATURE LETTING USERS EARN UP TO 10.8% YIELDS ON USDC THROUGH MORPHO INTEGRATION, ENABLING ONCHAIN DEFI LENDING DIRECTLY IN THE APP. pic.twitter.com/MubO1FZu7Z

— Coinwaft (@coinwaft) September 19, 2025

The feature is available in the US (excluding NY), Bermuda, Hong Kong, UAE, New Zealand, Philippines, Taiwan, and South Korea. We’ll be expanding to more regions in the coming weeks. Morpho has over $8B in TVL, showing strong demand for decentralized lending.

Building a USDC Ecosystem

Coinbase has been expanding USDC linked services in 2025 including Bitcoin backed USDC loans, derivatives, NFTs and AI driven payments. Onchain lending is the next layer in this ecosystem, as we continue to increase stablecoin utility and mainstream adoption.

USDC supply: $73B
Key integrations: Loans, NFTs, derivatives
Adoption focus: Retail access to DeFi yields

By connecting users to decentralized lending markets, Coinbase is making USDC the hub of the broader push towards mainstream crypto finance. This reinforces USDC as a tool for earning, spending and investing within the Coinbase ecosystem.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.