USDC and cbBTC dominate Morpho’s deposit base
According to ChainCatcher, on-chain data shows that assets associated with Coinbase have become the most important source of flow for the decentralized lending protocol Morpho. USDC and cbBTC together account for 53% of all deposits across the Morpho platform, placing Coinbase-related assets at the center of the protocol’s deposit structure.
The concentration is especially clear when looking at the user source behind those assets. Coinbase users contributed 83% of cbBTC deposits on Morpho and 59% of USDC deposits. In other words, Coinbase users represent a core share of the asset supply flowing into Morpho, with the cbBTC side showing an even heavier dependence on Coinbase-linked participation.
Borrowing activity is also tied to the Coinbase ecosystem
The borrowing side shows a similar pattern. Morpho has $2.3 billion in USDC borrowing on the platform, and around $1.2 billion of that amount comes from Coinbase users who use cbBTC as collateral. That share represents more than half of the platform’s USDC borrowing, according to the on-chain data cited in the report.
Analysts pointed out that Coinbase and Morpho have formed 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. Under this arrangement, Coinbase serves as the user and asset gateway, and Morpho provides the lending and yield infrastructure for those assets once they move on-chain.
The case shows that, in the crypto industry, the moat created by distribution channels often proves stronger than technology itself. For Morpho, USDC and cbBTC deposits and borrowing demand from the Coinbase ecosystem have become key sources of activity. For Coinbase, Morpho functions as a yield layer that helps channel user assets into decentralized lending markets.