Cryptocurrency exchange Coinbase Global, Inc. (COIN.US) announced on Thursday that it is launching an on-chain lending product that allows users to earn up to 10.8% yield by depositing USDC stablecoins.
The cryptocurrency exchange stated in a blog post that the new feature will be gradually rolled out to users in the United States (excluding New York State), Bermuda, and other countries over the coming weeks.
When users deposit USDC, Coinbase will create a smart contract wallet that connects to the Morpho protocol through on-chain vaults managed by Steakhouse Financial, with funds being allocated across multiple lending markets. Users can access their funds at any time and withdraw whenever liquidity permits.
The company noted that Coinbase currently provides users with a 4.1% annual percentage yield (APY) for USDC passive income, while Coinbase One members can enjoy a 4.5% APY.
USDC is a dollar-backed stablecoin issued by Circle Internet Corp. (CRCL.US).