Some early allocations are showing yields above 10%, a significant jump from what the exchange typically offers on stablecoin deposits.

The product runs on Base, Coinbase’s Layer 2 network, and integrates with Morpho, a lending protocol backed by Coinbase Ventures. Funds are placed into curated vaults managed by Steakhouse Financial, which automatically route liquidity across different pools. Once deposited, users begin accruing yield immediately, with withdrawals available depending on pool conditions.

This setup contrasts sharply with “USDC Rewards,” Coinbase’s loyalty program that pays around 4% APY and is funded internally by the exchange. The new approach instead channels capital into DeFi markets, exposing customers to onchain activity while aiming to keep the process simple inside the Coinbase app.

Access is gradually opening to users in the U.S. (except New York), as well as Bermuda, Hong Kong, the UAE, New Zealand, Taiwan, South Korea, and the Philippines. Coinbase says the launch is part of its broader goal to make onchain participation feel as accessible as traditional fintech platforms.

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The initiative follows a string of stablecoin-focused projects. Earlier this year Coinbase increased the borrowing limit on its Bitcoin-backed onchain loans through Morpho to $1 million. It also revived its Stablecoin Bootstrap Fund, designed to expand liquidity across decentralized protocols.

By pairing familiar interfaces with higher-yielding DeFi strategies, Coinbase is positioning USDC at the heart of its effort to bring mainstream users into the onchain economy.

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