Trezor now lets its 2 million hardware wallet users earn yield on USDC and USDT directly through Trezor Suite via an integration with Morpho's decentralized lending protocol on Ethereum. The feature removes the need for external wallets or separate DeFi applications.
Trezor integrated native stablecoin yield into its Suite application, letting 2 million hardware wallet users earn returns on USDC and USDT through Morpho's lending protocol on Ethereum.
The feature, announced Thursday, allows users to deposit USDt and USDC into pre-selected Morpho vaults curated by Steakhouse Financial — USDC Prime and USDT Prime — directly through Trezor Suite without connecting external wallets or using separate DeFi applications, the company said. Deposits, withdrawals and reward claims are signed directly on users' hardware wallets through Trezor's clear-signing interface, which displays transaction details in human-readable form on the device screen.
Yield is generated from borrowing demand on Morpho rather than token incentive programs, according to Trezor. The integration comes as wallet providers push to incorporate DeFi functionality directly into custody products. Ledger, Trezor's main competitor, already offers native stablecoin yield through Ledger Live using Kiln-powered integrations with protocols including Morpho, Aave and Compound.
The move could drive adoption of DeFi yield products among hardware wallet users who previously kept stablecoins idle, potentially boosting total value locked on Morpho and Ethereum. Stablecoin yield strategies have become one of the fastest-growing use cases in DeFi, with USDC yields varying widely across platforms and market conditions, with some protocols offering double-digit annual returns, according to CoinMarketCap data.
The tokenized real-world asset sector has grown to more than $34 billion in onchain value, up from about $5.8 billion at the start of 2025, according to RWA.xyz data. That growth has coincided with moves by crypto exchanges, trading platforms and tokenization companies to bring blockchain-based versions of traditional financial products onchain. In February, Binance added tokenized equities and exchange-traded funds from Ondo Finance to its Binance Alpha platform. In March, EtherFi allocated $25 million to Plume's Nest protocol to give users exposure to tokenized yield strategies tied to institutional assets and government securities. Boston Consulting Group said in a report earlier this month that tokenized funds, collateral and fixed-income products are among the blockchain-based financial products most likely to see broader institutional adoption over the coming decade.
However, Ethereum co-founder Vitalik Buterin recently drew a distinction between DeFi and many yield-focused stablecoin products, arguing that "USDC yield" strategies remain heavily dependent on centralized issuers while failing to address counterparty risk. Buterin proposed two alternative models he said align more closely with DeFi's decentralized ethos: Ether-backed algorithmic stablecoins and overcollateralized real-world asset-backed stablecoins.
This article is for informational purposes only and does not constitute investment advice.
