Coinbase has begun rolling out a new feature that lets users lend their USDC stablecoin holdings onchain, offering yields as high as 10.8%.
The service is powered by decentralized lending protocol Morpho, with allocations managed by Steakhouse Financial through onchain vaults on Base, Coinbase’s Ethereum Layer 2 network. When users deposit USDC, Coinbase creates a smart contract wallet that routes funds across multiple lending pools to optimize returns. Users start earning yield immediately and can withdraw anytime, subject to liquidity.
While the feature is built on DeFi infrastructure, Coinbase says it’s designed to feel familiar to mainstream users within the app. It differs from the company’s USDC Rewards program, which pays 4.1% APY (4.5% for Coinbase One members) but does not involve lending customer assets.
The new feature is launching first in the U.S. (excluding New York), Bermuda, Hong Kong, the UAE, New Zealand, the Philippines, Taiwan, and South Korea, with wider rollout planned in the coming weeks. Coinbase says the move is part of its broader strategy to connect users more directly to the onchain economy.
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