June 25, 2025 – Zug, Switzerland
The partnership offers white-labeled, non-custodial and Web 2.0-like stablecoin loans embedded directly in your wallet or application.
Gelato, the Web 3.0 developer cloud platform, together with Morpho, the decentralized lending protocol behind some of the most trusted lending infrastructure in Ethereum, today announced the launch of embedded crypto-backed loans.
The new partnership enables wallets, brokers and fintech apps to allow their users to instantly borrow stablecoins, like USDC, using their crypto assets as collateral.
The borrowing flow has a simple Web 2.0-like experience that is non-custodial and fully on-chain.
By combining Gelato’s Smart Wallet SDK with Morpho’s permissionless lending markets, the two teams offer a complete borrowing flow that platforms can securely integrate in days.
Crypto-backed loans are fully non-custodial and onchain, governed entirely by smart contracts.
Users can initiate loans in an on-chain bank account powered by embedded wallet infrastructure, 7702-powered smart accounts, gasless transactions and the ability to execute multiple transactions in a single click.
Morpho, which Coinbase recently partnered with to enable similar BTC-backed loans, brings proven lending infrastructure with over $6.5 billion in TVL (total value locked).
Gelato’s Smart Wallet SDK used by companies such as Safe, Infinex and Gnosis Pay handles account abstraction, one-click onboarding and gas sponsorship, enabling applications to deliver modern, Web 2.0-style user experiences.
Paul Frambot, CEO of Morpho Labs, said,
“We’re excited to see more platforms bring crypto-backed loans to users in a self-custodial way. Morpho is built to be integrated, and Gelato makes it easy to deliver a seamless UX on top.”
Embedded crypto-backed loans are designed to meet the needs of both consumer and institutional users, offering a simple, intuitive interface while preserving the non-custodial guarantees that users and platforms increasingly expect.
Key features
- Borrow USDC in one click using crypto assets like BTC as collateral
- Fully non-custodial and on-chain
- No credit checks required
- One-click wallet creation via email, social login or passkeys
- EIP-7702 powered smart wallet account
- Embedded UX with full brand control
- Gasless transactions across over 50 EVM chains
Later this year, Gelato will introduce new security and recovery features to extend the smart wallet stack.
These include passkey authentication, multi-signer two-factor approvals using regulated custodians and on-chain recovery modules tied to email or social logins.
All upgrades are implemented at the smart contract level to maintain full decentralization.
A full demo of the product is available here, showcasing the end-to-end borrowing experience from wallet creation to BTC collateralization and loan issuance.
Embedded crypto-backed loans are now available in beta on Polygon, Arbitrum, Optimism and Scroll, with support for Katana coming soon.
Gelato and Morpho are working closely with additional chain teams to expand deployment in the months ahead.
About Morpho
Morpho is a decentralized lending protocol, powering open, on-chain money markets. It enables pooled and peer-to-peer borrowing with programmable risk parameters and oracle-based pricing.
With over $6.5 billion in TVL, Morpho is one of the most widely adopted lending platforms in Ethereum.
Users can learn more at the website.
About Gelato
Gelato is Web 3.0’s developer cloud, providing enterprises with critical infrastructure to build Web 2.0-like non-custodial applications at scale.
It offers developer tooling for smart wallets, gas abstraction and deploying enterprise-grade rollups.
Gelato is used by leading apps, wallets and protocols across the EVM ecosystem to deliver seamless, secure and fully on-chain user flows.
Users can learn more here.
Contact
Matthew Hammond of Gelato
This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.
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