Stable has joined forces with Morpho to enhance lending across its ecosystem, including the Stable Pay application. This integration allows users to earn yields on idle balances.
Summary
- Stable has integrated the decentralized lending protocol Morpho into its blockchain ecosystem to facilitate yield generation on idle stablecoin balances, including the Earn feature of its digital application.
- The partnership aims to position the project as one of the most capital-efficient networks, enabling both institutional and retail users to earn yield on idle funds.
According to a press release sent to crypto.news, the stablecoin-enabled blockchain Stable has integrated the decentralized lending protocol Morpho into its ecosystem for the benefit of its holders. This collaboration will also extend to Stable Pay, the platform’s forthcoming digital payments app, where Morpho will support its “Earn” feature.
The collaboration between the two platforms focuses on leveraging idle stablecoin balances, allowing users and institutions to earn yield on funds that are not actively being utilized. Through Morpho’s lending network, balances that would otherwise remain idle can be placed into lending markets, generating interest while still being readily available for transactions.
Stable aims for this partnership to establish its stablecoin-centric ecosystem as a highly capital-efficient network, providing a fully auditable system that complies with regulatory requirements.
For institutional users, the integration addresses the challenge of managing large amounts of idle liquidity that could generate returns. Companies and financial institutions often hold substantial stablecoin reserves for settlements and transactions. However, when these funds are not in use, they remain dormant.
By integrating Morpho’s lending layer within the network, those inactive balances can be effectively deployed into lending markets, allowing treasuries to generate yields without sacrificing quick access to capital when needed.
For retail users, especially in regions where stablecoins are becoming daily finance staples, such as Latin America, Turkey, and Southeast Asia, this move signifies a broader trend toward stablecoins that offer both payment and yield features.
This effectively allows users to hold stablecoins that automatically accumulate yield, merging the functionalities of a savings account and a digital wallet within one platform.
According to a report from Citigroup, the stablecoin economy is projected to achieve a market cap of $4 trillion by 2030. Hence, leaving as little as 10% of this supply as idle liquidity could result in significant losses for the industry.
Morpho joins Stable’s infrastructure
Stable has established itself as a blockchain network tailored for institutional-grade payments, providing privacy and operational functionalities suited for large-scale transactions. It proclaims to be the world’s “first stablechain” due to its focus on supporting a blockchain fuelled by native stablecoins.
On the other hand, Morpho is already utilized by major corporations such as Coinbase, Société Générale, and World, recognized for its transparent, non-custodial lending system.
Through this partnership, Stable aims to transform how USDT (USDT) is used on-chain by incorporating it into the chain. By integrating Morpho’s lending network into the Stable ecosystem, including the Earn feature of Stable Pay, idle balances could start generating sustainable yields.
Stable Pay is Stable’s inaugural application, designed to be a non-custodial payment wallet that streamlines stablecoin transfers, making them easier, faster, and more secure. It is currently in its final stages of development, with a waiting list for users interested in gaining priority access at launch, along with exclusive updates and early access to new features.
Earn will be among the functionalities available to users at launch, allowing for seamless integration into Morpho’s lending layer.
Most recently, Stable has garnered support from PayPal Ventures, the venture arm of the U.S.-based company. Last month, the platform raised $28 million in a funding round led by PayPal Ventures. This integration enables users to utilize PayPal’s Paxos-powered stablecoin, PYUSD (PYUSD), for commerce and financial transactions through the layer1 network, Stablechain.
