TL;DR
- Morpho surpassed $5 billion in deposits on Base, representing more than 70% of total deposits on the network.
- Loans backed by Coinbase’s cbBTC generated more than $1.3 billion in active USDC debt and $2.5 billion in deposited collateral.
- Robinhood, Kraken and Binance are studying or have already adopted the onchain credit architecture that Morpho and Base consolidated as a model.
The decentralized credit protocol Morpho records more than $5 billion in deposits on Coinbase‘s Base network, representing more than 70% of all active deposits on that blockchain. This record marks an inflection point for onchain finance and positions Base as the protocol’s largest deployment network, surpassing even Ethereum, where the protocol was originally launched.
The protocol arrived on Base in May 2024, when total deposits on the network barely reached $1.8 billion. Today that figure stands at $6.8 billion. Since the original deployment proposal, the team maintained that Base concentrated the sufficient density of users and developers needed to become the backbone of onchain credit at a global scale.
$5B is the new day one on @base pic.twitter.com/zUkSxGdc4S
— Morpho 🦋 (@Morpho) August 6, 2026
The DeFi Mullet and the Morpho Effect on Base
The quantitative leap came in January 2025, when Coinbase launched its crypto-backed loans on Morpho‘s infrastructure. The model, called the “DeFi Mullet“, combines fintech distribution with open infrastructure. By May 2025, this product had already accumulated more than $1.3 billion in active debt in USDC, backed by $2.5 billion in cbBTC deposited in Morpho. Volume originated by Coinbase alone accounts for approximately 26% of all protocol deposits on Base.
USDC demand led to the launch of DeFi Earn, Coinbase’s yield product built on Base, which grew to nearly $500 million in total deposits. Both products generated a liquidity cycle: more integration attracts more funds, better rates and greater appeal for new integrators such as Bitso and Deblock.
Infrastructure for Issuers
The ecosystem also benefits asset issuers. Approximately 39% of all cbBTC in circulation across chains is deposited in Morpho, including 82% of the cbBTC present on Base. Stablecoin deposits on Base are at all-time highs, with Circle and Ethena as the leading issuers. Meanwhile, real-world asset issuers such as Centrifuge, Midas, Spiko and Birch Hill are already replicating the same structure.
Furthermore, with the launch of Midnight, available exclusively on Base, institutions can access fixed-rate and fixed-term products onchain.
