Stable has partnered with Morpho to power lending across its ecosystem, including the Stable Pay app. It claims that this integration allows users to generate revenue through idle balances.
summary
- Stable has integrated decentralized lending protocol Morpho into its blockchain ecosystem, including the Earn feature for digital apps, enabling revenue generation from idle stablecoin balances.
- This partnership aims to make the project one of the most capital-efficient networks by allowing both institutional and individual users to earn revenue from idle funds.
According to a press release sent to crypto.news, stablecoin-powered blockchain Stable has integrated decentralized lending protocol Morpho into its ecosystem, allowing holders to generate income. The partnership will also extend to Stable Pay, the platform’s upcoming digital payments app, where Morpho will enhance its “earn” capabilities.
The partnership between the two platforms aims to leverage idle balances in stablecoins by allowing users and institutions to earn yield from funds that are not actively traded. Through Morpho’s lending network, unspent balances can be deployed to the lending market, allowing you to generate interest while maintaining immediate access to payments.
Stable hopes this partnership will help establish an ecosystem around stablecoins as one of the most capital efficient networks for both institutional and retail users. The solution claims to provide a fully auditable system that meets compliance requirements.
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For institutional users, this integration solves the problem of large amounts of idle payment liquidity that can generate revenue. Companies and financial institutions often store large amounts of stablecoins to facilitate payments and transactions. However, if these funds are not actively used, they simply lie dormant.
By embedding Morpho’s lending layer within the network, these inactive balances can be automatically deployed to the lending market, allowing Treasurys to earn yield when payment requests occur without sacrificing immediate access to capital.
The move reflects a broader shift to stablecoins that combine both payment and yield functions, especially for retail users in regions where stablecoins are already part of everyday finance, such as Latin America, Turkey, and Southeast Asia.
This means users can hold stablecoins that automatically generate yield, effectively combining the functionality of a savings account and a digital wallet within a single platform.
According to a report by Citigroup, the stablecoin economy is projected to grow to reach $4 trillion in market capitalization by 2030. This means that leaving just 10% of this supply in idle liquidity could cost the industry billions of dollars.
Morpho joins Stable’s infrastructure
Stable positions itself as a blockchain network built for institutional-level payments, offering privacy and operational tools suitable for large-scale transactions. It claims to be the world’s “first stablechain” as it focuses on promoting blockchain leveraging native stablecoins.
Morpho, on the other hand, is already used by major companies such as Coinbase, Société Générale, and World, and is recognized for its transparent non-custodial lending system.
Through this partnership, Stable aims to change the way USDT is used on-chain by bringing it on-chain. By incorporating Morpho’s lending network into the Stable ecosystem, including Stable Pay’s Earn, idle balances can become a sustainable source of income.
Stable Pay is Stable’s first application and is intended to be a non-custodial payment wallet designed to make stablecoin transfers easier, faster, and more secure. It is currently in the final stages of development. However, the platform has opened a waiting list for users who want priority access at launch, along with early access to exclusive product updates and new features.
Acquisition will be one of the features available to users after launching the app, allowing for immediate integration into Morpho’s lending layer.
Most recently, Stable received backing from PayPal Ventures, the company’s US-based venture arm. Last month, the platform raised $28 million in a funding round backed by PayPal Ventures. This integration will allow users to use PayPal’s Paxos-powered stablecoin PYUSD (PYUSD) for commercial and financial transactions over Stablechain, a layer 1 network.
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