crypto.com users will soon be able to lend their wrapped crypto assets and earn yields on Stablecoins via Morpho, a Decentralized Financial (DEFI) lending protocol.
Morpho has launched Stablecoin Lending Markets on the Cronos blockchain, with the first vault of the year expected. The integration allows users to deposit wrapped ether (ETH) or Bitcoin (BTC) into morphovart and borrow stubcoins against them to earn yields.
A wrapped asset is a token representing another cryptocurrency on another blockchain. Cronos uses wrap tokens such as CDCETH, CDCBTC Mirror ETH and BTC tokens to bring value to your network and give you access to the lending market without leaving the chain.
Merlin Egalite, co-founder of Morpho, told Cointelegraph that the goal is “to provide a reliable user experience on the front and a Defi infrastructure on the back.” The protocol is directly integrated into the Crypto.com platform, allowing lending capabilities to be accessed by users of the platform.
Morpho, which matches lenders and borrowers on platforms like Aave and Compound, will become the second largest Defi Lending protocol, with a total of around $7.7 billion, according to Defillama.
Egalite also confirmed that the protocol is accessible to US users. The Genius Act prohibits Stablecoin issuers from paying directly to holders, but “the restrictions do not apply as lending Stablecoin and revenue yields is another activity unrelated to the issuer,” he said.
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The collaboration between Morphos and crypto.com only took place a few weeks after a similar integration between Morphos and the US Crypto Exchange Coinbase.
On September 18, Coinbase announced that it will be integrating Morpho Lending Protocol directly into the app using Vaults managed by Defi Advisory Company Steakhouse Financial. Similar to crypto.com integration, this feature allows users to rent USDCs (USDCs) without leaving the platform for external defi services or wallets.
According to Coinbase, the new integration could allow users to access the on-chain lending market and earn a return of up to 10.8% over the current 4.5% APY of the reward given to retain USDC on the platform.
A few days later, Coinbase CEO Brian Armstrong said the company is aiming to become a full-service crypto “super app” and ultimately aims to replace people’s needs for traditional banks.
Naturally, the banks are being pushed back. In August, the Institute for Banking Policy (BPI) and several US financial institutions wrote letters to the US Congress. They urged Stablecoin’s loopholes that claim to allow Stablecoin issuers to compete with banks without comparable supervision. Otherwise, the letter said, could potentially drain $6.6 trillion in deposits from the US banking system.
On September 16, Coinbase called the bank’s allegations false in a blog post, saying there was no evidence that Stablecoin’s growth caused deposit outflows at local banks. The post said:
“Currently, agencies warning about ‘body risk’ are the same as pocketing hundreds of billions of card processing fees, and Stablecoins could be bypassed entirely. ”
The Genius Act, signed into law in the United States in July 2025, banned stable coins supporting interest, but does not explicitly prevent crypto exchanges or related companies from offering yields.
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