Coinbase has expanded its on-chain lending services with a new high-yield USDC vault, built in partnership with synthetic dollar protocol Ethena. The product, which went live on June 11, allows users to lend USDC directly within the Coinbase app while earning returns through decentralized lending markets.
The vault runs on infrastructure from Morpho, a decentralized lending protocol, and asset allocations are curated by Steakhouse Financial. Unlike Coinbase’s existing Prime USDC vault—which focuses on high-quality collateral such as cbBTC, cbETH, and wstETH—the High Yield vault accepts a broader range of assets, including Ethena’s USDe. This dynamic collateral framework can generate higher borrowing demand and, in turn, higher yields for lenders.
USDe is a synthetic dollar that maintains its peg through crypto-backed collateral and delta-neutral hedging strategies, setting it apart from reserve-backed stablecoins like USDC and USDT. Its inclusion in the vault gives Ethena a powerful new distribution channel through Coinbase’s global user base.
The integration keeps the user experience simple: depositors select a vault inside the Coinbase app, while underlying transactions execute via Morpho smart contracts. According to Ethena’s announcement, this marks the first live product from the Ethena ✦ Coinbase collaboration, bringing a “best-in-class savings rate” to Coinbase customers.
Coinbase’s move deepens its push into on-chain financial services, following recent launches such as AI-powered transaction tools and Base network infrastructure. The high-yield vault is available globally, including in the United States, signaling a significant step in bridging centralized exchanges with DeFi yield opportunities.
