Coinbase Adds USDC Lending With Morpho and Steakhouse Financial

Core Insights - Coinbase has launched a USDC lending product that allows customers to earn yield directly from its app, enhancing its integration with decentralized finance (DeFi) [1] - The lending feature is powered by Morpho, which manages deposits through curated "vaults" [1] - Users can deposit USDC and earn returns from interest paid by borrowers, with the ability to withdraw funds anytime without lockups [1] Group 1: Product Features - The new lending product creates a flywheel effect, where lending and borrowing services support each other [2] - More than $900 million in loans have been originated through Coinbase's crypto-backed loan service, contributing to a complete onchain lending and borrowing ecosystem [2] Group 2: Strategic Approach - Coinbase is utilizing Morpho's smart contracts for backend operations while maintaining its user-friendly interface, adopting a "DeFi mullet" strategy [3] - This approach combines a familiar fintech experience with decentralized infrastructure, aiming to simplify access to decentralized lending markets for users [4] Group 3: Market Implications - The product emphasizes the belief that the future of finance will rely on open networks accessed through trusted platforms [4]