Coinbase announced that eligible users in Brazil will gain access to its DeFi Earn product on September 9, 2026, allowing them to lend USDC directly through the app. The service relies on Morpho’s lending infrastructure, while Brazil’s tighter crypto oversight adds another consideration for the rollout.
Coinbase Brings USDC Lending to Brazilian Users
Brazilian customers can access the Lending tab in the Coinbase app and allocate USDC to the service. Coinbase transfers the funds on-chain to Morpho, a decentralized lending protocol that connects lenders with borrowers. The deposits then enter a vault curated by Steakhouse Financial, which Coinbase said has undergone an audit.
Borrowers use crypto assets as collateral and pay interest on USDC loans. Morpho determines the interest rates based on supply and demand, and depositors receive those payments as returns. Users can withdraw their funds at any time without committing to a fixed lockup period.
Coinbase said returns can rise when demand for USDC loans increases relative to available supply, while additional deposits or weaker borrowing demand can lower rates. Coinbase One members may also receive a rate increase where offered, although the company has not disclosed the launch rate for Brazilian customers.
Brazil Rollout Builds on Existing Coinbase Lending Model
Coinbase described the Brazil launch as another way for customers to earn from USDC alongside staking and its standard USDC Rewards program. Fabio Plein, Coinbase’s regional managing director for the Americas, said the product supports the company’s broader Everything Exchange strategy.
The lending service differs from Coinbase’s regular USDC Rewards program because deposits are sent into an on-chain vault, with returns generated through borrowing activity. Coinbase first introduced the lending model in other markets in September 2025, routing USDC into Morpho vaults on Base.
At launch, the earlier product offered rates of up to 10.8% APY, though returns were variable. Coinbase now says the service has nearly $500 million in total supply and has recently offered rates reaching 7.4% APY. Current returns can change as Morpho lending conditions shift.
The Brazil rollout comes as local authorities tighten oversight of crypto businesses. In June, Brazil’s central bank introduced independent audit requirements covering areas including anti-money laundering controls, customer asset segregation, internal risk controls and employee compliance programs.
Brazil began establishing its virtual asset framework in 2022 and assigned oversight of crypto service providers to the central bank in 2023. Existing firms have until October 2026 to meet rules covering licensing, custody, governance and stablecoin supervision.
