Coinbase launches Morpho‑powered USDC lending for Brazilian users

Coinbase announced that its DeFi Earn service, which routes USDC to the Morpho decentralized lending protocol, is now available to eligible customers in Brazil. Users can access the product through the Lending tab in the Coinbase app and allocate any amount of USDC they wish.

How the product works

When a user deposits USDC, Coinbase transfers the stablecoins on‑chain to Morpho. The funds are placed in an audited vault curated by Steakhouse Financial, which allocates the assets across various lending markets on Morpho. Borrowers provide crypto collateral and pay interest to borrow USDC; that interest is distributed to depositors as their return.

Key features

• No fixed lock‑up period – users may withdraw USDC and accrued rewards at any time, subject to on‑chain liquidity.
• Variable rates – returns depend on supply and demand in Morpho’s markets rather than a set rate from Coinbase.
• Potential boost for Coinbase One members – an additional rate increase may apply where the benefit is available.

Performance to date

Since its initial U.S. launch in September 2025, the Morpho‑powered product has attracted nearly $500 million in total deposits. Reported rates have ranged from a high of 10.8 % APY at launch to recent figures of up to 7.4 % APY, though actual returns will vary as borrowing activity changes.

Relation to other Coinbase offerings

The USDC lending service is separate from Coinbase’s standard USDC Rewards program and from a June‑launched Ethena‑powered USDC vault, which uses a different collateral profile (cbBTC, cbETH, wrapped staked Ether, etc.). The Brazil rollout currently includes only the existing Morpho‑powered DeFi Earn service.

Regulatory context in Brazil

Brazil’s central bank has tightened oversight of virtual asset service providers, adding audit requirements and extending licensing frameworks through October 2026. Stablecoins dominate the country’s crypto activity, accounting for roughly 90 % of reported flows, according to central bank statements.