Crypto.com is preparing to integrate Morpho lending into its Cronos platform, enabling users to lend wrapped cryptocurrency assets and earn yields on stablecoins via a decentralized finance (DeFi) protocol.
A statement released on Thursday highlighted that Morpho will introduce lending markets for stablecoins on the Cronos blockchain, with initial vaults expected to launch later this year. This collaboration will allow users to deposit wrapped Ethereum (ETH) or Bitcoin (BTC) into Morpho vaults to obtain stablecoins and earn yields on those deposits.
Wrapped assets are digital currencies that represent other cryptocurrencies on different blockchains. In the Cronos ecosystem, tokens like CDCETH and CDCBTC correspond to ETH and BTC, granting users the ability to access DeFi lending opportunities while remaining on the network.
Merlin Egalite, co-founder of Morpho, mentioned the initiative aims to offer a “trusted user experience in the front, with DeFi infrastructure in the back.” This protocol will be directly incorporated into the Crypto.com platforms, granting easy access to its lending services.
Total value locked on DeFi lending protocols. Source: DeFillama
According to data from DeFiLlama, Morpho has ascended to the position of the second-largest DeFi lending protocol, boasting a combined total value locked of around $7.7 billion.
Egalite also assured that US users will have access to the protocol. He clarified that while the Genius Act prevents stablecoin issuers from directly paying out yields to users, lending stablecoins and generating yields represents a distinct operation, thereby falling outside the scope of this restriction.
Genius Act Raises Queries Regarding Stablecoin Yields
The announcement of this partnership comes just weeks after a similar arrangement between Morpho and the US cryptocurrency exchange Coinbase. On September 18, Coinbase revealed its plan to integrate Morpho’s lending protocol into its own application, enabling users to manage vaults under the guidance of DeFi advisory firm Steakhouse Financial. This feature allows users to lend USDC (USDC) locally without needing to engage with external DeFi services or wallets.
Coinbase indicated that this new integration will provide users access to on-chain lending markets, with potential yields reaching up to 10.8%, a notable increase compared to the 4.5% annual percentage yield currently earned from holding USDC on their platform.
In a subsequent statement, Brian Armstrong, CEO of Coinbase, noted that the company aspires to evolve into a comprehensive cryptocurrency “super app” that could eventually substitute the need for traditional banking services.
However, this push is facing resistance from banks. In August, the Bank Policy Institute (BPI) and other financial institutions addressed a letter to Congress, urging them to eliminate stablecoin loopholes that they argue enable stablecoin issuers to compete with banks without sufficient regulation. They warned that inaction could result in a significant withdrawal of deposits—up to $6.6 trillion—from the US banking system.
On September 16, Coinbase countered these claims, asserting that there is no substantial proof that the expansion of stablecoins has led to deposit losses in local banks. Their blog post 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.”
Despite regulatory challenges, including the Genius Act, which prohibits interest-bearing stablecoins and was enacted in the US in July 2025, it does not explicitly ban crypto exchanges from offering yield.
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