Crypto.com to Launch Crypto Lending and Stablecoin Yields via Morpho on Cronos

Crypto.com is increasing its decentralized finance choices by integrating Morpho, the second-largest DeFi lending protocol, into its platform.

The transfer will permit customers to lend wrapped crypto property and earn stablecoin yields instantly on Cronos, the blockchain developed by Crypto.com.

The integration, announced Thursday, will convey stablecoin lending markets to Cronos later this 12 months.

Crypto.com to Let Users Borrow Stablecoins Against Wrapped BTC and ETH on Cronos

Users shall be in a position to deposit wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC), tokenized variations of ETH and BTC on Cronos, and borrow stablecoins towards their deposits to generate yield.

Wrapped property permit customers to work together with DeFi protocols on a selected blockchain with out bridging native tokens.

By retaining funds throughout the Cronos ecosystem, Crypto.com goals to streamline the lending course of and deepen engagement with its native chain.

Morpho’s co-founder, Merlin Egalite, stated the initiative is designed to provide a seamless front-end expertise powered by decentralized infrastructure.

The protocol shall be built-in instantly into Crypto.com’s consumer interface, eliminating the necessity for separate wallets or platforms.

Morpho at the moment holds over $7.7 billion in whole worth locked, in accordance to DefiLlama, making it the second-largest protocol within the DeFi lending house.

It matches lenders and debtors throughout protocols like Aave and Compound, optimizing charges via its peer-to-peer layer.

Incoming: DeFi Mullet on @cryptocom

A full earn & borrow suite for hundreds of thousands of @cryptocom customers

Built on @cronos_chain. Powered by Morpho. pic.twitter.com/3xPvMi8zZm

— Morpho (@MorphoLabs) October 2, 2025

Crucially, Morpho’s providers shall be out there to U.S. customers regardless of the Genius Act, signed into regulation in July 2025, which prohibits stablecoin issuers from paying yield instantly.

Egalite clarified that lending stablecoins is a definite exercise from receiving reserve yields, making it legally permissible.

This marks Morpho’s second main change integration in latest weeks. On September 18, Coinbase built-in the protocol into its app, permitting customers to lend USDC via vaults managed by Steakhouse Financial.

The platform advertises potential yields of up to 10.8%, far above the 4.5% supplied via customary USDC rewards.

Coinbase CEO Brian Armstrong later declared the corporate’s ambition to grow to be a full-service crypto “tremendous app,” positioning itself instead to conventional banks.

That ambition has rattled legacy finance. In August, main US banks and the Bank Policy Institute urged Congress to tighten regulation on stablecoins, warning that unchecked progress may pull trillions from the normal banking system.

Coinbase pushed again, calling the claims “false” and accusing banks of defending outdated fee-based fashions threatened by crypto innovation.

Banks Turn to Stablecoins as Competition Increases

In August, Citigroup CEO Jane Fraser confirmed the financial institution is “wanting on the issuance of a Citi stablecoin” whereas growing tokenized deposit providers for company shoppers in search of 24/7 settlement capabilities.

Earlier in June, JPMorgan also launched JPMD deposit tokens for institutional blockchain payments whereas CEO Jamie Dimon was questioning its use case.

The financial institution served as lead underwriter for Circle’s IPO, which has climbed over 500% since its $31 providing worth.

It additionally seems that some establishments are exhibiting approval to management stablecoins, as seen within the latest Bank of England’s proposal for strict ownership.

The financial institution caps between £10,000 and £20,000 for people and £10 million for companies, which triggered widespread backlash.

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