Crypto.com is expanding its decentralized finance offering by integrating Morpho, the second largest DeFi lending protocol, into its platform.
Key Takeaways:
- Crypto.com integrates Morpho to offer stablecoin lending and packaged asset deposits on Cronos.
- Users can borrow stablecoins against wrapped ETH and BTC without leaving the Crypto.com platform.
- Morpho’s lending services will be accessible to US users, despite Genius Act restrictions.
The move will allow users to lend wrapped crypto assets and earn stablecoin returns directly on Cronos, the blockchain developed by Crypto.com.
The integration, announced on Thursdaywill bring stablecoin lending markets to Cronos later this year.
Crypto.com lets users borrow stablecoins against wrapped BTC and ETH on Cronos
Users can deposit wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC), tokenized versions of ETH and BTC on Cronos, and borrow stablecoins against their deposits to generate returns.
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 own chain.
Morpho co-founder Merlin Egalite said the initiative is designed to provide 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.
According to DefiLlama, Morpho currently has over $7.7 billion in total value locked, making it the second largest protocol in DeFi lending.
It matches lenders and borrowers through protocols such as Aave and Compound, optimizing rates through the peer-to-peer layer.
Crucially, Morpho’s services will be available to US users despite the Genius Act, which was signed into law in July 2025, which prohibits stablecoin issuers from paying returns directly.
Egalite clarified that lending stablecoins is a different activity than receiving reserve returns, 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 borrow USDC through vaults managed by Steakhouse Financial.
The platform advertises potential returns of up to 10.8%, well above the 4.5% offered through standard USDC rewards.
Coinbase CEO Brian Armstrong later stated the company’s ambition to become a full-service crypto “super app,” positioning itself as an alternative to traditional banks.
That ambition has thrown the old financial sector into turmoil. In August, major U.S. banks and the Bank Policy Institute urged Congress to tighten regulations on stablecoins, warning that unchecked growth could drain 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 are turning to Stablecoins as competition increases
In August, Citigroup CEO Jane Fraser confirmed that the bank is “looking at issuing a Citi stablecoin” while developing tokenized deposit services for corporate clients looking for 24/7 settlement options.
Earlier in June, JPMorgan also launched JPMorgan deposit tokens for institutional blockchain payments, with CEO Jamie Dimon questioning the use case.
The bank acted as lead underwriter for Circle’s initial public offering, which has risen more than 500% since its $31 offering price.
It also appears that some institutions are showing approval to control stablecoins, as evidenced by the Bank of England’s recent proposal for strict ownership.
The banking limits are between £10,000 and £20,000 for individuals and £10 million for businesses, sparking widespread backlash.
The post Crypto.com Launches Crypto Lending and Stablecoin Yields via Morpho on Cronos first appeared on Cryptonews.
