article 🚀 Crypto.com Expands Into DeFi Lending With Morpho Integration on Cronos

Crypto.com is making a major move into decentralized finance by partnering with Morpho, the world’s second-largest DeFi lending protocol. The collaboration will soon introduce crypto lending and stablecoin yield services directly on Cronos, Crypto.com’s native blockchain network.

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Key Highlights

• Morpho is being integrated into Crypto.com’s Cronos chain to power stablecoin lending and wrapped asset deposits.

• Users will be able to borrow stablecoins using wrapped ETH and BTC as collateral — all within the Crypto.com ecosystem.

• U.S. customers will still have access to Morpho’s lending markets, even under the restrictions of the Genius Act.

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A New Era of On-Chain Lending

Announced Thursday, the partnership will roll out later this year, marking a major upgrade to Cronos’ DeFi ecosystem.
Through this integration, Crypto.com users can lend and earn yield on wrapped crypto assets — such as wrapped Ether (CDCETH) and wrapped Bitcoin (CDCBTC) — while staying within the platform.

Wrapped tokens let users engage with decentralized protocols without having to bridge native assets across different blockchains. By keeping all lending activity native to Cronos, Crypto.com aims to simplify DeFi access and boost adoption of its blockchain network.

Morpho’s co-founder Merlin Egalite described the collaboration as an effort to deliver a “streamlined, fully decentralized user experience” that merges the efficiency of traditional finance with blockchain transparency.

The Morpho protocol will be embedded directly into the Crypto.com interface, eliminating the need for external wallets or third-party platforms.

Currently, Morpho boasts over $7.7 billion in total value locked (TVL), per DefiLlama data, placing it second only to Aave in the global DeFi lending market. The protocol acts as a matching engine between lenders and borrowers, optimizing interest rates by using a peer-to-peer matching layer that sits on top of Aave and Compound.

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Compliance Under the Genius Act

A key detail in the partnership is that Morpho’s services will remain available to U.S. users — even after the Genius Act, passed in July 2025, which restricts stablecoin issuers from paying direct yields.

Egalite clarified that lending stablecoins isn’t the same as earning yield from reserves, and therefore remains fully legal under current regulations.

This development marks Morpho’s second major exchange integration in recent weeks. In September, Coinbase also incorporated Morpho into its app, enabling users to lend USDC through vaults managed by Steakhouse Financial.

The platform’s advertised returns reach up to 10.8%, significantly higher than the typical 4.5% USDC rewards offered elsewhere.

Coinbase CEO Brian Armstrong said the move reflects the company’s ambition to evolve into a “full-service crypto super app”, positioning it as a viable alternative to the traditional banking system.

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Traditional Banks Feel the Heat

The DeFi expansion by major exchanges has drawn criticism from legacy financial institutions. In August, several top U.S. banks — alongside the Bank Policy Institute — urged lawmakers to impose tighter oversight on stablecoins, arguing that unchecked growth could pull trillions in deposits away from traditional banks.

Coinbase countered these claims, calling them “misleading” and accusing banks of defending outdated, fee-based models threatened by crypto innovation.

Still, traditional institutions are beginning to respond. Citigroup CEO Jane Fraser confirmed that the bank is exploring its own Citi stablecoin, alongside tokenized deposit products designed for 24/7 settlements between corporations.

Meanwhile, JPMorgan introduced JPMD deposit tokens for institutional blockchain payments in June, even as CEO Jamie Dimon continued to question crypto’s long-term role.

The bank also acted as lead underwriter for Circle’s IPO, which has since soared over 500% from its initial $31 listing price.

Across the Atlantic, regulators are taking a firmer stance: the Bank of England recently proposed strict ownership limits on stablecoins — between £10,000–£20,000 for individuals and up to £10 million for businesses — sparking backlash from crypto advocates and fintech leaders.

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Summary

• Crypto.com and Morpho are joining forces to launch stablecoin lending on Cronos.

• The integration allows borrowing against wrapped BTC and ETH without leaving the platform.

• U.S. access remains legal under the Genius Act due to regulatory distinctions.

• Traditional banks are responding to DeFi’s growth with new digital asset experiments.

• The move cements Crypto.com’s role in bridging centralized and decentralized finance.