Crypto.com has announced the integration of Morpho lending into its Cronos blockchain, which will enable users to earn yields on stablecoins by lending wrapped crypto assets. This move mirrors Coinbase’s recent venture into decentralized finance (DeFi) lending.
According to a statement released on Thursday, the Morpho protocol will introduce stablecoin lending markets on Cronos, with the first vaults expected to be operational this year. Users will be able to deposit wrapped ETH and BTC into Morpho vaults, allowing them to borrow stablecoins for yield generation.
Wrapped assets represent cryptocurrencies on a different blockchain. For instance, on Cronos, tokens like CDCETH and CDCBTC are pegged to ETH and BTC, facilitating user access to DeFi lending markets while remaining on the chain.
Merlin Egalite, co-founder of Morpho, remarked that the aim is to offer “a trusted user experience in the front, with DeFi infrastructure in the back.” The lending features will be directly integrated into the Crypto.com platforms.
Total value locked on DeFi lending protocols. Source: DeFillama
Morpho stands as the second-largest DeFi lending protocol, boasting a total value locked of approximately $7.7 billion, as indicated by DefiLlama. Egalite also confirmed that US users will have access to the protocol despite the Genius Act, which prohibits stablecoin issuers from offering direct yields to holders. He explained that “lending a stablecoin and earning yield is a separate activity, independent of the issuer, so the restriction does not apply.”
Genius Act Leaves Unanswered Questions Regarding Stablecoin Yield
The partnership between Morpho and Crypto.com follows a similar tie-up with Coinbase earlier this month. On September 18, Coinbase announced its integration of the Morpho lending protocol into its app, managed by DeFi advisory firm Steakhouse Financial. This feature allows users to lend USDC without relying on external DeFi services or wallets.
Coinbase’s integration is expected to provide users with access to on-chain lending markets and the potential for yields up to 10.8%, significantly surpassing the current 4.5% APY offered for holding USDC on their platform.
On September 16, Brian Armstrong, the CEO of Coinbase, asserted that the company aspires to become a comprehensive crypto “super app,” aiming to replace traditional banks entirely. However, banks have voiced concerns regarding this trend. In August, the Bank Policy Institute along with several US financial institutions urged Congress to close stablecoin loopholes that could allow stablecoin issuers to compete without appropriate oversight, warning of the potential loss of up to $6.6 trillion in deposits.
In response to these allegations, Coinbase labeled the banks’ claims as unfounded, highlighting they had found no evidence suggesting stablecoin growth correlated with local bank deposit outflows. They stated:
“The institutions now warning of ‘systemic risk’ are the same ones pocketing tens of billions from card processing fees, which stablecoins could bypass entirely.”
Although the Genius Act, effective July 2025, restricts interest-bearing stablecoins, it does not explicitly prohibit crypto exchanges or related entities from offering yields.
