Gelato and Morpho have announced the launch of embedded crypto-backed loans that enable users to instantly borrow stablecoins like USDC using crypto assets as collateral.
Overview of Loan Features
Through this new partnership, users will be able to borrow stablecoins like USDC using their crypto assets as collateral. The borrowing process promises simplicity and convenience similar to Web2 applications while ensuring full decentralization and security via smart contracts. Key features include:
* Borrowing USDC in one click using BTC as collateral * Fully decentralized and on-chain * No credit checks required * Wallet creation in one click via email, social login, or passkeys * EIP-7702 powered Smart Wallet Account * Embedded UX with full brand control * Gasless transactions across 50+ EVM chains
Partnership Strategy
Morpho and Gelato designed this solution to provide both individual and institutional users with a convenient interface and high level of security. Morpho Labs CEO Paul Frambot stated, "We are excited to see more platforms bringing crypto-backed loans to users in a self-custodial way." This initiative aims to broaden access to financial tools within the Ethereum ecosystem.
Future Updates and Expansion
Gelato plans to introduce new security features and recovery options, including passkey authentication, multi-signer two-factor approvals, and on-chain recovery modules tied to emails or social logins. All upgrades will be implemented at the smart contract level to maintain full decentralization. Embedded crypto-backed loans are already available in beta on Polygon, Arbitrum, Optimism, and Scroll, with further expansion planned in the coming months.
The launch of embedded crypto-backed loans by Gelato and Morpho promises to greatly simplify the loan acquisition process for users, offering them enhanced flexibility and security when dealing with cryptocurrencies.
