Crypto.com is expanding its decentralized finance offerings by integrating Morpho, the second-largest DeFi lending protocol, into its platform.
Key Takeaways:
Crypto.com is integrating Morpho to offer stablecoin lending and wrapped asset deposits on Cronos. Users will be able to borrow stablecoins against wrapped ETH and BTC without leaving the Crypto.com platform. Morpho’s lending services will be accessible to U.S. users despite restrictions from the Genius Act.The move will allow users to lend wrapped crypto assets and earn stablecoin yields directly on Cronos, the blockchain developed by Crypto.com.
The integration, announced Thursday, will bring stablecoin lending markets to Cronos later this year.
Crypto.com to Let Users Borrow Stablecoins Against Wrapped BTC and ETH on Cronos
Users will be able to deposit wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC), tokenized versions of ETH and BTC on Cronos, and borrow stablecoins against their deposits to generate yield.
Wrapped assets allow users to interact with DeFi protocols on a specific blockchain without bridging native tokens.
By keeping funds within the Cronos ecosystem, Crypto.com aims to streamline the lending process and deepen engagement with its native chain.
Morpho’s co-founder, Merlin Egalite, said the initiative is designed to offer a seamless front-end experience powered by decentralized infrastructure.
The protocol will be integrated directly into Crypto.com’s user interface, eliminating the need for separate wallets or platforms.
Morpho currently holds over $7.7 billion in total value locked, according to DefiLlama, making it the second-largest protocol in the DeFi lending space.
It matches lenders and borrowers across protocols like Aave and Compound, optimizing rates through its peer-to-peer layer.
Crucially, Morpho’s services will be available to U.S. users despite the Genius Act, signed into law in July 2025, which prohibits stablecoin issuers from paying yield directly.
Egalite clarified that lending stablecoins is a distinct activity from receiving reserve yields, making it legally permissible.
This marks Morpho’s second major exchange integration in recent weeks. On September 18, Coinbase integrated the protocol into its app, allowing users to lend USDC through vaults managed by Steakhouse Financial.
The platform advertises potential yields of up to 10.8%, far above the 4.5% offered through standard USDC rewards.
Coinbase CEO Brian Armstrong later declared the company’s ambition to become a full-service crypto “super app,” positioning itself as an alternative to traditional banks.
That ambition has rattled legacy finance. In August, major US banks and the Bank Policy Institute urged Congress to tighten regulation on stablecoins, warning that unchecked growth could pull trillions from the traditional banking system.
Coinbase pushed back, calling the claims “false” and accusing banks of defending outdated fee-based models threatened by crypto innovation.
Banks Turn to Stablecoins as Competition Increases
In August, Citigroup CEO Jane Fraser confirmed the bank is “looking at the issuance of a Citi stablecoin” while developing tokenized deposit services for corporate clients seeking 24/7 settlement capabilities.
Earlier in June, JPMorgan also launched JPMD deposit tokens for institutional blockchain payments while CEO Jamie Dimon was questioning its use case.
The bank served as lead underwriter for Circle’s IPO, which has climbed over 500% since its $31 offering price.
It also appears that some institutions are showing approval to control stablecoins, as seen in the recent Bank of England’s proposal for strict ownership.
The bank caps between £10,000 and £20,000 for individuals and £10 million for businesses, which triggered widespread backlash.
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