Crypto.com users will be able to borrow stablecoins against BTC and ETH through Morpho on Cronos. Yields of up to 10% even for users in the US.
Crypto.com Launches Stablecoin Lending with Morpho
Crypto.com has announced an integration with Morpho, the second largest DeFi lending protocol with a TVL of over $7.7 billion. In the coming months, the first vaults will open on the Cronos blockchain, where users will be able to:
- deposit wrapped assets (CDCETH, CDCBTC);
- borrow stablecoins against them;
- earn yield on the funds lent.
Exemption from Genius Act restrictions
The new Genius Act rule, which banned interest-bearing stablecoins in the US, does not apply to this product. Morpho co-founder Merlin Egalite explained that “lending a stablecoin and earning a profit is a separate activity, independent of the issuer.”
This means that the feature will also be available to users in the US, despite previous regulatory barriers.
Part of a larger DeFi strategy
The Crypto.com integration continued a trend: in September, Coinbase also added Morpho to its app through advisors Steakhouse Financial, offering returns of up to 10.8% on USDC, more than double the standard 4.5% APY.
Coinbase CEO Brian Armstrong said at the time that the company wanted to become a full-fledged “crypto super app” capable of replacing traditional banks.
Banks on the defensive
Traditional financial institutions reacted strongly: in August, the Bank Policy Institute, along with a number of banks, called on Congress to close “loopholes” in the regulation of stablecoins. They said that the development of this market could drain up to $6.6 trillion in deposits from the banking system.
Coinbase responded by accusing banks of double standards: the same institutions that now talk about “systemic risks” earn tens of billions every year in card fees, which stablecoins allow you to avoid.
