A New Era of Stablecoin Yield on Cronos
Crypto.com has announced the integration of Morpho lending into its Cronos blockchain, enabling users to lend wrapped Bitcoin (BTC) and Ethereum (ETH) to earn stablecoin yields. The move mirrors Coinbase’s DeFi lending expansion and signals a growing trend among exchanges to merge traditional crypto platforms with onchain finance.
The first Morpho vaults on Cronos are expected to launch before the end of the year. Users will be able to deposit wrapped assets such as CDCBTC and CDCETH, then borrow stablecoins against them to generate yield—all without leaving the Crypto.com ecosystem.
Why Wrapped Assets Matter
Wrapped tokens are digital assets that represent another cryptocurrency on a different blockchain. On Cronos, CDCETH and CDCBTC track the value of ETH and BTC, enabling seamless participation in DeFi lending markets. This allows users to unlock liquidity without selling their crypto, while still benefiting from yield opportunities.
Morpho co-founder Merlin Egalite described the partnership as a way to offer “a trusted user experience in the front, with DeFi infrastructure in the back,” ensuring accessibility for both new and advanced users.
Morpho’s Growing Influence
Morpho has quickly become a DeFi powerhouse, ranking as the second-largest lending protocol with over $7.7 billion in total value locked (TVL), according to DefiLlama. Unlike traditional DeFi platforms, Morpho optimizes efficiency by matching lenders directly with borrowers, reducing inefficiencies seen in protocols like Aave and Compound.
Notably, Egalite confirmed that US users will have access to Morpho on Crypto.com. The GENIUS Act restricts stablecoin issuers from paying direct yields on reserves, but lending and borrowing activities remain outside its scope, making this integration legally compliant.
Coinbase, Crypto.com, and the Race for DeFi Yield
This collaboration comes just weeks after Coinbase integrated Morpho into its app, offering users up to 10.8% APY on stablecoin lending—far higher than the 4.5% APY previously offered for simply holding USDC.
Crypto.com’s move signals a DeFi race among centralized exchanges, with both platforms positioning themselves as all-in-one crypto “super apps” capable of replacing traditional banking services.
Banking Sector Pushback
Unsurprisingly, US banks are raising alarms. The Bank Policy Institute (BPI) recently argued that stablecoin lending could siphon off as much as $6.6 trillion in deposits from the traditional banking system, creating what they call “systemic risk.”
Coinbase has rejected these claims, accusing banks of protecting their multi-billion-dollar revenue streams from card processing fees—fees that stablecoins and DeFi could bypass entirely.
With the Crypto.com–Morpho integration, Cronos positions itself as a hub for yield-bearing DeFi products accessible directly through centralized platforms. As regulatory frameworks evolve, integrations like this may reshape how millions of users save, borrow, and earn in the digital economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.