Coinbase Adds USDC Lending Vaults on Morpho

Two secure vault safes beside a shield-protected coin stack and an upward bar chart with dollar bills on a white background

Coinbase Launches Two Onchain USDC Lending Vaults on Morpho – Users Can Choose Between Prime and Higher Yield Risk Tiers

Key Takeaways

Coinbase has introduced two onchain USDC lending vaults built on Morpho and curated by Steakhouse Financial.
The Prime tier lends against BTC and ETH collateral and is positioned as a conservative option.
The Higher Yield tier uses a broader collateral mix, including assets powered by Ethena.
Morpho currently holds about $6.5 billion in total value locked, while Steakhouse manages $2.03 billion in Morpho vault TVL.

Coinbase Introduces Onchain USDC Lending via Morpho Infrastructure

Coinbase has launched two onchain USDC lending vaults that run on Morpho, a permissionless lending protocol. The product was announced through the company’s official communication channels and detailed in a blog post outlining the structure and risk profiles.

The vaults allow users to lend USDC onchain while selecting between two distinct risk tiers. This marks the first time Coinbase offers users a structured choice of risk profile for lending directly from the exchange interface.

Morpho provides the non custodial lending infrastructure underpinning the vaults. According to available data, Morpho has raised $175 million in funding at a reported $2 billion valuation and currently holds approximately $6.5 billion in total value locked, based on figures cited from DefiLlama.

For users evaluating yield generating opportunities, the integration connects a centralized exchange interface with decentralized lending markets. The underlying mechanics, including collateral selection and loan to value parameters, are managed onchain, while the Coinbase interface abstracts those technical settings.

Prime Tier Focuses on BTC and ETH as Collateral

The first option, referred to as the Prime vault, is described as a conservative tier. It lends USDC against blue chip crypto collateral, primarily Bitcoin (BTC) and Ethereum (ETH).

Existing Steakhouse curated USDC vaults on Morpho currently show yields in the 3.5 to 4 percent range, according to DefiLlama pool data referenced in the source material. While Coinbase did not specify an exact rate for the Prime tier, the indication is that comparable vaults fall within that range.

By limiting collateral to BTC and ETH, the Prime tier concentrates on assets that are widely used as base collateral in decentralized finance markets. For users, the structure provides a clearly defined exposure profile tied to two major cryptocurrencies.

Higher Yield Tier Incorporates Ethena Powered Assets

The second option, labeled Higher Yield, accepts a broader basket of collateral. This includes assets issued by Ethena.

One example referenced is USDtb, Ethena’s T bill backed stablecoin. A Steakhouse curated vault using USDtb on Morpho currently yields approximately 8.79 percent annually, according to DefiLlama data cited in the source material. Coinbase describes the Higher Yield tier as backed by “a broader mix of assets, including those powered by @ethena,” but does not name specific instruments within the product description.

Ethena issues two stablecoins. USDe has $4.48 billion in circulation across 28 chains, while USDtb is positioned as a T bill backed stablecoin. The inclusion of Ethena related assets in the Higher Yield tier links the product’s return profile to these instruments and their underlying structures.

For users comparing options, the distinction between tiers lies in the type of collateral accepted and the associated yield range observed in similar Morpho vaults.

Steakhouse Financial Curates Risk Parameters

Steakhouse Financial acts as the risk curator for both vaults. The firm manages $2.03 billion in Morpho vault total value locked and selects the collateral markets used in each vault. It also sets loan to value ratios and other risk parameters at the protocol level.

As of May, Steakhouse had built a roughly $1 billion lead over its nearest Morpho vault competitor, according to prior coverage cited in the source material. Its role in the Coinbase vaults sits one layer below the user interface. While Coinbase presents a simplified choice between Prime and Higher Yield, Steakhouse defines the technical configuration of the underlying Morpho markets.

This structure separates infrastructure, risk curation, and asset issuance into distinct roles. Morpho supplies the lending protocol, Steakhouse determines collateral eligibility and parameters, and Ethena provides yield bearing assets used in the Higher Yield tier.

Existing Relationship Between Coinbase and Ethena

The launch builds on a pre existing relationship between Coinbase and Ethena. Coinbase Ventures took an open market stake in ENA, Ethena’s token, in June as part of a broader distribution agreement. The new vault structure incorporates assets powered by Ethena within the Higher Yield tier, reflecting that connection.

For users of crypto platforms, the collaboration illustrates how centralized exchanges are integrating decentralized lending infrastructure and third party asset issuers into structured products accessible through a single interface.

Our Assessment

Coinbase’s introduction of two onchain USDC lending vaults establishes a tiered structure that differentiates between BTC and ETH backed lending and a broader collateral model including Ethena powered assets. The product relies on Morpho for infrastructure and on Steakhouse Financial for risk curation, while incorporating assets issued by Ethena in the Higher Yield tier. The launch formalizes a risk based choice within Coinbase’s lending offering and connects centralized exchange users to predefined decentralized lending markets.