Crypto.com brings Morpho lending to Cronos for stablecoin yields

Crypto.com customers will quickly give you the chance to lend wrapped crypto belongings and earn yield on stablecoins by way of Morpho, a decentralized finance (DeFi) lending protocol.

In accordance to a Thursday assertion, Morpho will launch stablecoin lending markets on the Cronos blockchain, with the primary vaults anticipated this 12 months. The mixing will enable customers to deposit wrapped Ether (ETH) or Bitcoin (BTC) into Morpho vaults and borrow stablecoins in opposition to them to earn yield.

Wrapped belongings are tokens that signify one other cryptocurrency on a unique blockchain. On Cronos, wrapped tokens resembling CDCETH and CDCBTC mirror ETH and BTC, permitting customers to convey worth into the community and entry DeFi lending markets with out leaving the chain.

Merlin Egalite, co-founder of Morpho, informed Cointelegraph the objective is to present “a trusted person expertise within the entrance, with DeFi infrastructure within the again.” The protocol might be built-in straight into the Crypto.com platforms, making its lending options accessible to the platform’s customers.

Morpho, which matches lenders and debtors on prime of platforms resembling Aave and Compound, has change into the second-largest DeFi lending protocol, with a complete worth locked of round $7.7 billion, in accordance to DefiLlama. 

Egalite additionally confirmed that the protocol might be accessible to US customers. Whereas the Genius Act prohibits stablecoin issuers from paying reserve yields straight to holders, “lending a stablecoin and incomes yield is a separate exercise, unbiased of the issuer, so the restriction doesn’t apply,” he stated.

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Genius Act leaves questions round stablecoin yield

The collaboration between Morphos and Crypto.com solely got here a number of weeks after an analogous integration between Morphos and the US crypto change Coinbase.  

On Sept. 18, Coinbase introduced it was integrating the Morpho lending protocol straight into its app with vaults managed by DeFi advisory firm Steakhouse Monetary. Just like the Crypto.com integration, the characteristic lets customers lend the USDC (USDC) with out leaving the platform for exterior DeFi providers or wallets.

In accordance to Coinbase, the brand new integration will allow customers to entry onchain lending markets and doubtlessly earn yields of up to 10.8%, considerably greater than the present 4.5% APY in rewards given for holding USDC on the platform.

Just a few days later, the CEO of Coinbase, Brian Armstrong, stated the corporate goals to change into a full-service crypto “super app,” and in the end exchange folks’s want for conventional banks.

Unsurprisingly, banks are pushing again. In August, the Financial institution Coverage Institute (BPI) and a number of other US monetary establishments wrote a letter to the US Congress urging them to close stablecoin loopholes that they declare enable stablecoin issuers to compete with banks with out equal oversight. In accordance to the letter, failing to achieve this might drain as a lot as $6.6 trillion in deposits from the US banking system.

On Sept. 16, Coinbase called the banks’ allegations false in a weblog put up, stating there is no such thing as a proof that stablecoin development has triggered deposit outflows at native banks. The post stated:

“The establishments now warning of ‘systemic threat’ are the identical ones pocketing tens of billions from card processing charges, which stablecoins might bypass fully.”

Though the Genius Act, which was signed into legislation within the US in July 2025, banned interest-bearing stablecoins, it doesn’t explicitly stop crypto exchanges or affiliated companies from offering yield.

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