Crypto.com, a leading cryptocurrency platform, is expanding its decentralized finance offerings by integrating Morpho, the second-largest DeFi lending protocol, into its platform. This integration will bring stablecoin lending markets to Cronos, the blockchain developed by Crypto.com, later this year.
Users on Crypto.com will now have the ability to lend wrapped crypto assets and earn stablecoin yields directly on Cronos. Wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC) can be deposited on Cronos, allowing users to borrow stablecoins against their deposits to generate yield. Wrapped assets enable users to interact with DeFi protocols on a specific blockchain without the need to bridge native tokens.
The initiative is designed to offer a seamless front-end experience powered by decentralized infrastructure, according to Morpho’s co-founder, Merlin Egalite. By integrating Morpho directly into Crypto.com’s user interface, users will not need separate wallets or platforms to access the lending services.
Morpho currently holds over $7.7 billion in total value locked, 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.
Despite restrictions from the Genius Act, which prohibits stablecoin issuers from paying yield directly, Morpho’s lending services will be accessible to U.S. users. Egalite clarified that lending stablecoins is legally permissible, even under the new regulations.
This integration with Crypto.com marks Morpho’s second major exchange integration in recent weeks. Coinbase also integrated the protocol into its app, allowing users to lend USDC through vaults managed by Steakhouse Financial. Coinbase CEO Brian Armstrong has expressed the company’s ambition to become a full-service crypto “super app” and a strong competitor to traditional banks.
In response to the growing competition from crypto platforms, traditional banks like Citigroup and JPMorgan are exploring stablecoin issuance and tokenized deposit services. The Bank of England has proposed strict ownership regulations for stablecoins, capping individual and business holdings.
Overall, the integration of Morpho into Crypto.com’s platform will offer users more opportunities to participate in decentralized finance and earn yields on their crypto assets. With the growth of DeFi and the increasing interest from traditional financial institutions, the landscape of finance is evolving rapidly.