Gelato And Morpho Partner To Offer Embedded Crypto-Backed Loans For Wallets, Brokers, And Fintech Apps

The partnership offers white-labeled, non-custodial, and Web2-like stablecoin loans embedded directly in your wallet or application.

Gelato , the web3 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, Web2-like experience that is non-custodial and fully onchain. 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 onchain 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 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, web2-style user experiences.

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 onchain
• 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 +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 onchain 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 at:

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

About Gelato

MENAFN25062025007842016840ID1109722895