Crypto.com Expands Offerings with Crypto Lending and Stablecoin Yields via Morpho on Cronos

Crypto.com Expands Offerings

Crypto.com is enhancing its decentralized finance (DeFi) capabilities by incorporating Morpho, the second-largest lending protocol in the DeFi space, into its platform.

Key Takeaways:

Crypto.com is integrating Morpho to facilitate stablecoin lending and wrapped asset deposits on the Cronos blockchain.
Users can borrow stablecoins backed by wrapped Ethereum (ETH) and Bitcoin (BTC) without leaving the Crypto.com ecosystem.
Despite the restrictions from the Genius Act, Morpho’s lending services will still be available to U.S. users.

This integration will empower users to lend wrapped crypto assets and earn stablecoin yields directly on Cronos, the blockchain created by Crypto.com. Announced on Thursday, this collaboration will unveil stablecoin lending markets on Cronos later this year.

Borrowing Stablecoins Against Wrapped BTC and ETH on Cronos

Users will have the opportunity to deposit wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC), which are tokenized forms of ETH and BTC on Cronos. They can then borrow stablecoins against these deposits to generate yields.

Wrapped assets enable users to engage with DeFi protocols within a specific blockchain without needing to bridge their native tokens. By keeping assets within the Cronos ecosystem, Crypto.com aims to simplify the lending process and encourage greater interaction with its native chain.

Merlin Egalite, co-founder of Morpho, explained that this initiative is designed to provide a user-friendly experience supported by decentralized infrastructure. The protocol will be seamlessly integrated into Crypto.com’s user interface, which means users won't need to navigate separate wallets or platforms.

Currently, Morpho manages over $7.7 billion in total locked value, as noted by DefiLlama, making it the second-largest protocol in the DeFi lending sector. Morpho connects lenders and borrowers across protocols like Aave and Compound, optimizing interest rates through its peer-to-peer layer.

Incoming: DeFi Mullet on @cryptocom

A complete earn & borrow suite for millions of @cryptocom users

Built on @cronos_chain and powered by Morpho. pic.twitter.com/3xPvMi8zZm — Morpho 🦋 (@MorphoLabs) October 2, 2025

Importantly, even with the Genius Act signed into law in July 2025, which restricts stablecoin issuers from paying yield directly, Morpho’s services will be accessible to U.S. users. Egalite clarified that lending stablecoins represents a different activity from receiving reserve yields, thereby making it legally permissible.

This represents Morpho's second significant exchange integration in a short period. On September 18, Coinbase also integrated Morpho into its platform, enabling users to lend USDC via vaults managed by Steakhouse Financial. This feature promises potential yields of up to 10.8%, considerably higher than the standard 4.5% reward for USDC.

Coinbase CEO Brian Armstrong later announced the company's goal to evolve into a comprehensive “super app” for cryptocurrency, aiming to compete with traditional banks. This ambition has sparked concern among legacy financial institutions. In August, several major U.S. banks and the Bank Policy Institute urged Congress to impose stricter regulations on stablecoins, warning that unregulated growth could siphon funds from the traditional banking system.

Coinbase refuted these claims, dismissing them as "false" and accused banks of clinging to outdated fee-based business models that are threatened by crypto advancements.

Banks Exploring Stablecoins Amidst Rising Competition

Citigroup CEO Jane Fraser confirmed in August that the bank is exploring the launch of a Citi stablecoin while also working on tokenized deposit services for corporate clients that require round-the-clock settlement capabilities. Similarly, in June, JPMorgan introduced JPMD deposit tokens designed for institutional blockchain transactions, while CEO Jamie Dimon raised questions about their practical applications.

Furthermore, the bank was the lead underwriter for Circle’s IPO, which has surged over 500% since its initial offering price of $31. There seems to be a growing inclination among some financial institutions to control stablecoins, as evidenced by the recent proposal from the Bank of England for stringent ownership regulations. This proposal imposes caps between £10,000 and £20,000 for individuals and £10 million for businesses, which has resulted in considerable backlash.