Coinbase Expands USDC Stablecoin Rewards via Morpho Onchain Lending to Brazil

Crypto exchange Coinbase started integrating Morpho onchain lending protocol for customers in Brazil. It will enable users to earn more rewards on their USDC stablecoin holdings, with no lock-up required.

Coinbase Taps Morpho to Boost USDC Stablecoin Earnings for Brazil

The crypto exchange is expanding its existing Morpho-powered DeFi Earn product to eligible customers in Brazil, according to an official announcement on September 9. The product availability will expand over the coming days.

Users can access lending features through the Lending tab on their Coinbase app to allocate USDC stablecoins. Coinbase moves the deposit to the Morpho protocol, matching lenders and borrowers on-chain.

The USDC accrues rewards in an audited vault curated by Steakhouse Financial. Users can withdraw their USDC stablecoin rewards at any time as there is no lock-up period.

Rates are market-driven and change with onchain supply and demand. Coinbase One subscribers receive a boosted rate where available.

Coinbase’s Earn product saw massive adoption in the US. Since launch, it has reached nearly $500 million USD in total supply and offered up to 7.4% APY. It has become one of the fastest-growing ways customers put USDC to work.

Deepening Utility for Brazilian Users

Coinbase states the launch as another way for users to put idle USDC to work, alongside staking and existing USDC rewards. The company says the goal is to deepen USDC utility for Brazilian customers and connect them more closely to its broader Everything Exchange vision.

“The expansion reflects our efforts to make users’ assets work harder for them, alongside staking and USDC Rewards as pathways for users to build their wealth and become more connected to the Everything Exchange, said Fabio Plein, regional managing director for the Americas at Coinbase.

This creates a two-sided market in which lenders supply liquidity that borrowers use against crypto collateral. Notably, this onchain lending path is separate from Coinbase’s standard USDC Rewards program.

As CoinGape reported earlier, Visa is also pushing onchain lending deeper into everyday payments. The payments giant combined its settlement data with blockchain credit infrastructure to enable stablecoin-linked card issuers and fintechs tap working capital as they scale.

As decentralized finance lending platforms continue to dominate, check out the Best DeFi Lending Platforms in 2026.