According to ChainCatcher, on-chain data shows that assets associated with Coinbase have become one of the most important sources of traffic for the decentralized lending protocol Morpho. USDC and cbBTC together account for 53% of all deposits across the Morpho platform, placing these two assets at the center of the protocol’s current deposit structure.
The data also shows that Coinbase users contribute a large share of the deposits in these assets. Coinbase users account for 83% of cbBTC deposits on Morpho and 59% of USDC deposits. This indicates that a substantial part of Morpho’s USDC and cbBTC liquidity is directly connected to Coinbase users and the Coinbase asset ecosystem.
The borrowing side reflects a similar level of reliance on the Coinbase ecosystem. Of the $2.3 billion in USDC borrowing on Morpho, around $1.2 billion comes from Coinbase users who use cbBTC as collateral. That figure represents more than half of the platform’s USDC borrowing volume, showing that Coinbase-linked users are not only supplying assets but also forming a major part of borrowing demand.
Analysts cited in the report said the two sides have developed a deeply symbiotic relationship. Coinbase is responsible for user acquisition and asset routing, while Morpho acts as a yield layer that brings those assets into on-chain activity. In this structure, the user and asset distribution channel of a centralized exchange is connected with the lending and yield functions of a decentralized protocol.
The case also illustrates the role of distribution channels in the crypto industry. For Morpho, USDC and cbBTC from the Coinbase ecosystem have become important components of both deposits and borrowing activity. For Coinbase-linked assets, Morpho provides a path into on-chain lending and yield operations.