Coinbase launches USDC lending on Base: up to 10.8% APY

2025/09/19 14:55

Up to 10.8% APY on USDC, directly from the Coinbase app: this is the new offer from the exchange thanks to the integration of Morpho’s lending services on Base.

In brief

Announcement date: September 18, 2025
On-chain yield: up to 10.8% APY (variable)
USDC on Coinbase (custodial): 4.1% APY (up to 4.5% for Coinbase One)
Supply USDC: variable data — see official dashboard (over $73 billion in September 2025)

What Coinbase Announces

Coinbase activates USDC lending through an onchain integration with Morpho on the Base network. The official announcement currently indicates a maximum observed yield of 10.8% APY. In this context, it is an indicative value. The rate is variable and depends on the balance between supply and demand in the lending markets.

According to publicly available data, the announcement is dated September 18, 2025, and reports a peak of 10.8% APY in the initial roll-out phase. Industry analysts note that the variability of rates in DeFi can be high; to put it in context, the total supply of USDC exceeds $73 billion in September 2025, a figure available on Circle’s official dashboard. Onchain checks can verify related transactions and the contracts involved through BaseScan to confirm allocations to Morpho markets and curated vaults.

How Morpho Integration Works on Base

Coinbase creates a smart contract wallet for the user. The deposits in USDC are then allocated towards the Morpho markets and in vault onchain managed by Steakhouse Financial on Base, with automated yield optimization. That said, the operations remain entirely onchain. The goal is to connect lenders and borrowers more efficiently, reducing intermediations.

Expected Returns and Comparison

The onchain yield can reach up to 10.8% APY (data reported on September 18, 2025) and can vary rapidly. In this context, the value captures dynamic market conditions. The term APY (Annual Percentage Yield) includes compound capitalization.

For comparison, USDC balances held on Coinbase earn 4.1% APY (up to 4.5% for Coinbase One members). Indeed, the differential reflects the extra onchain risk and the variability typical of DeFi markets.

Availability and Access

The feature is in gradual roll-out. At launch, it is available for users in the United States (excluding New York), Bermuda, and other eligible countries. It should be noted that access depends on identity verification, residency, and local Coinbase policies.

How to Start: Quick Steps

Open the Coinbase app and access the USDC lending section.
Authorize the creation of the dedicated smart contract wallet.
Deposit USDC and confirm the transaction on Base.
Wait for the automatic yield generation through the Morpho/Steakhouse Financial integration.
Monitor the APY and liquidity; make the withdrawal when available.

Risks, limitations, and what to keep in mind

Smart contract risk: vulnerabilities in protocols or vaults.
Liquidity risk: during periods of high usage, withdrawals may experience delays until liquidity is restored.
Counterparty/strategy risk: the performance and security of third-party managed vaults affect returns.
Stability of the stablecoin: USDC is designed to be redeemable 1:1 with USD, although residual risks related to the issuer and the custody of reserves remain.
Rate Variability: the APY can increase or decrease without notice based on market dynamics.
Uninsured: reward programs are not deposits and are not covered by FDIC or SIPC.

Frequently Asked Questions, in Brief

Costs: network fees on Base and implicit commissions in vault strategies may apply.
Timing: the crediting of the yield is continuous or periodic based on the market; withdrawal times depend on liquidity.
Transparency: verifiable onchain data on BaseScan for the contracts involved.
Eligibility: subject to geographic and regulatory requirements imposed by Coinbase.

Impact on the DeFi Ecosystem

The integration brings retail users onchain through a simplified flow, bridging the custodial UX experience to the world of decentralized finance. Yet, it is a step that strengthens the distribution of DeFi yields on stablecoins and reopens the debate on the centralization of access versus user autonomy.

Disclosure

USDC Rewards is a discretionary program by Coinbase. Yield products on USDC are not savings accounts, do not constitute deposits, and are not insured by FDIC or SIPC. Yields are variable and not guaranteed. Always check the official documentation and terms before use.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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Franklin Templeton, one of the world’s largest asset management firms, has taken a significant step in introducing the Spot XRP Exchange-Traded Fund (ETF). The company submitted an updated S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) last week, removing language that likely stood in the way of approval. The change is indicative of a strong commitment to completing the fund sale in short order — as soon as this month. The amendment is primarily designed to eliminate the “8(a)” delay clause, a technological artifact of ETF filings under which the SEC can prevent the effectiveness of a registration statement from taking effect automatically until it affirmatively approves it. By deleting this provision, Franklin Templeton secures the right to render effective the filing of the Registration Statement automatically upon fulfillment of all other conditions. This development positions Franklin Templeton as one of the most ambitious asset managers to file for a crypto ETF amid the current market flow. It replicates an approach that Bitcoin and Ethereum ETF issuers previously adopted, expediting approvals and listings when the 8(a) clause was removed. The timing of this change is crucial. Analysts say it betrays a confidence that the SEC will not register additional complaints against XRP-related products — especially as the market continues to mature and regulatory infrastructures around crypto ETFs take clearer shape. For Franklin Templeton, which manages assets worth more than $1 trillion globally, an XRP ETF would be a significant addition to its cryptocurrency investment offerings. The firm already offers exposure to Bitcoin and Ethereum through similar products, indicating an increasing confidence in digital assets as an emerging investment asset class. Other asset managers race to launch XRP ETFs Franklin Templeton isn’t the only one seeking to launch an XRP ETF. Other asset managers, such as Canary Funds and Bitwise, have also revised their S-1 filings in recent weeks. Canary Funds has withdrawn its operating company’s delaying amendment and is seeking to go live in mid-November, subject to exchange approval. Bitwise, another major player in digital asset management, announced that it would list an XRP ETF on a prominent U.S. exchange. The company has already made public fees and custodial arrangements — the last steps generally completed when an ETF is on the verge of a launch. The surge in amended filings indicates growing industry optimism that the SEC may approve several XRP ETFs for marketing around the same time. For investors, this would provide new, regulated access to one of the world’s most widely traded cryptocurrencies, without the need to hold a token directly. Investors prepare for ripple effect on markets The competition to offer an XRP ETF demonstrates the next step toward institutional involvement in digital assets. If approved, these funds would provide investors with a straightforward, regulated way to gain token access to XRP price movements through traditional brokerages. An XRP ETF could also onboard new retail investors and boost the liquidity and trust of the asset, similarly to what spot Bitcoin ETFs achieved earlier this year. Those funds attracted billions of dollars in inflows within a matter of weeks, a subtle indication of the pent-up demand among institutional and retail investors. The SEC, which has become more receptive to digital-asset ETFs after approving products including Bitcoin and Ethereum, is still carefully weighing every filing. Final approval will be based on full disclosure, custody, and transparency of how pricing is happening through the base market. Still, market participants view the update in Franklin Templeton’s filing as their strongest sign yet that they are poised. With a swift response from the firm and news of other competing funds, this should mean that we don’t have long to wait for the first XRP ETF — marking another key turning point in crypto’s journey into traditional finance. If you're reading this, you’re already ahead. Stay there with our newsletter.

XRP$2.2454-4.77%

FUND$0.01374--%

1$0.03108+210.80%

Coinstats

2025/11/05 09:16

Canada’s budget promises laws to regulate stablecoins, following US

                                                                               Canada’s government unveiled a plan to regulate stablecoins, requiring fiat-backed issuers to maintain sufficient reserves and adopt robust risk management measures.                     Canada is set to introduce legislation regulating fiat-backed stablecoins under its federal budget for 2025, following the footsteps of the US, which passed landmark stablecoin laws in July.Stablecoin issuers will be required to hold sufficient reserves, establish redemption policies and implement various risk management frameworks, including measures to protect personal and financial data, according to the government’s 2025 budget released on Tuesday.The Bank of Canada would allocate $10 million over two years, starting in the 2026-2027 fiscal year, to ensure everything runs smoothly, followed by an estimated $5 million in annual costs that will be offset from stablecoin issuers regulated under the Retail Payment Activities Act.Read more