Introducing Embedded Crypto-Backed Loans

Offer white labeled, non-custodial, and web2-like crypto-backed loans embedded directly in your wallet, platform, or application. Available in beta starting today on Arbitrum, Optimism, Polygon, Base, and Scroll. Coming soon to Katana.

Today, in collaboration with Morpho, we’re introducing a new way for exchanges, wallets, custodians, and fintech apps to offer fully non-custodial crypto-backed loans with a blockchain-abstracted UX, directly within their products. The entire flow is embedded and abstracted from the user, delivering a borrowing experience that feels native to your app and as simple as any modern application.

Powered by Morpho’s decentralized lending infrastructure and Gelato’s Smart Wallet SDK, users can instantly borrow stablecoins like USDC using their crypto assets as collateral, all without wallet extensions, seed phrases, or gas fees.

Borrow Against Crypto, Without Selling

The borrowing flow is simple:

Create a wallet in one click using email or social login
Deposit crypto as collateral
Borrow USDC instantly
Repay anytime

No custody. No transactions to sign. No gas. No credit checks.

All lending logic is executed and enforced onchain via smart contracts. Fully composable and embedded directly in your product.

Powered by Morpho and Gelato

At the core of this offering are two modular systems:

Morpho Protocol

An open and audited lending infrastructure that manages loan terms, interest rates, and collateralization logic entirely onchain. All logic is protocol-governed, not platform-controlled.

Gelato Smart Wallet SDK

A modular toolkit for wallets to upgrade to EIP-7702 and ERC-4337 compatible smart accounts, fully abstracting all onchain interactions from their users. It supports one-click onboarding, ERC-20 gas payments, and a gasless UX across 50+ chains.

Together, these components allow you to integrate crypto-backed lending in days, without building custom lending or smart wallet infrastructure.

Bring Crypto-Backed Lending to Your Platform

With Embedded Crypto-Backed Loans, every stage of the loan lifecycle, from smart wallet creation to collateral deposit, USDC issuance, and repayment, is executed fully onchain and embedded directly into your product.

The partnership is meant to help exchanges, wallets, brokers, custodians, and fintech apps to go from idea to production in days and not months. It allows you to offer secure, composable and gas abstracted lending functionality without without managing custody or building custom backend infrastructure.

“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.”

— Paul Frambot, CEO, Morpho Labs

These capabilities are part of a broader roadmap to expand security and recovery features of Gelato's Smart Wallet SDK, including support for passkeys, multi-signer 2FA, and recovery modules. These features are in development and expected to roll out later this year.

What’s Available Today

Borrow USDC against crypto collateral
Gasless UX
Embedded wallet onboarding
EIP-7702 smart accounts

The product is available today in beta, with support across:

Polygon
Arbitrum
Optimism
Base
Scroll
Katana (Coming Soon)

Experience Crypto-Backed Loans

Try the full borrowing flow:

One-click wallet creation via social, email, or passkeys
BTC collateral deposit
Instant USDC loan execution

🔗 Try the Demo →

Built With Smart Wallet Infrastructure

This partnership demonstrates what’s possible with Gelato’s Smart Wallet SDK. By combining account abstraction (EIP-7702), gas sponsorship, and embedded onboarding, the SDK enables modern financial experiences that feel intuitive to users, while remaining fully onchain.

Learn More

If you’re interested in enabling crypto-backed lending or exploring other embedded finance use cases, get in touch or explore the SDK: