Coinbase expands DeFi lending with Ethena-powered USDC vault

Coinbase has added a high-yield USDC vault to its in-app DeFi lending offering.

The product runs on Morpho infrastructure and uses vault allocations curated by Steakhouse Financial. The launch introduces a second lending option that offers exposure to a wider range of collateral assets.

Ethena gains a new route inside Coinbase

Coinbase users can now lend USDC through the High Yield vault without leaving the exchange application. The product operates through Morpho-based lending markets and supports a more dynamic collateral framework. Unlike the existing Prime USDC vault, the new option includes Ethena-related assets among accepted collateral. Coinbase continues to provide access through its existing consumer interface. Users select a vault while underlying transactions move through onchain infrastructure.

Ethena gains another distribution channel through the Coinbase ecosystem. USDe serves as one of the assets connected to the collateral structure. According to the project design, USDe uses crypto-backed collateral and hedging strategies. The asset differs from reserve-backed stablecoins such as USDC and USDT. Coinbase users now access a lending product that includes exposure to markets supported by those assets.

Steakhouse Financial curates the vault allocations while Morpho provides the lending infrastructure. Deposited funds enter lending markets where borrowers pay interest to lenders. The system keeps lending activity within the Coinbase application. At the same time, the lending operations are executed through a decentralized infrastructure. The arrangement expands Coinbase’s existing DeFi lending framework.

Prime and high-yield vaults use different collateral structures

The Prime USDC vault focuses on collateral such as cbBTC, cbETH, and wstETH. Coinbase positions the vault around assets considered higher quality within the lending framework. Meanwhile, the High Yield vault accepts a broader collateral mix. The additional collateral options can increase borrowing demand across supported markets. As a result, lenders may access different market-driven returns.

Steakhouse Financial separates both products according to collateral exposure. Prime vaults maintain a narrower collateral profile across supported markets. High-yield vaults permit assets with different liquidity characteristics. Borrowers using those assets may pay different rates for USDC liquidity. Consequently, each vault operates under a separate risk structure.

Coinbase describes the product as part of its on-chain lending offering. Users choose between collateral profiles through a simplified interface. The lending mechanics continue to operate through Morpho smart contracts. Depositors receive interest generated from borrower activity. Returns depend on conditions inside the underlying lending markets.

Coinbase deepens on-chain financial services

The launch adds another onchain financial product to Coinbase’s consumer platform. Users access lending features without moving funds to external applications. Coinbase combines exchange access with decentralized infrastructure through the vault system. The company continues expanding products connected to onchain services. Recent launches have included payment and automation tools.

As it was reported by crypto.news, Coinbase recently introduced Coinbase for Agents to support transactions through AI-powered assistants. The company also expanded the infrastructure connected to the base network. According to Coinbase, Base-related systems have processed more than 100 million AI agent transactions. The lending vault launch arrives as Coinbase develops additional on-chain products. These services remain accessible through the main Coinbase application.

For Ethena, the new vault provides another distribution channel for USDe-related activity. For Coinbase, the launch expands its existing DeFi lending lineup. Users can now select between Prime and High Yield vaults based on available collateral structures. Both products operate through Morpho infrastructure and Steakhouse-managed allocations. The High Yield vault is now available through the Coinbase application.