Coinbase Launches DeFi Mullet Strategy: Web2 Frontend Meets Ethereum Backend

๐Ÿ”€ DeFi Mullet Revealed

By Coinbase
Nov 10, 2025, 4:10 PM
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Coinbase is implementing the "DeFi Mullet" approach - combining user-friendly fintech interfaces with Ethereum's DeFi infrastructure backbone.​

This strategy offers several key advantages:

  • Efficiency: All financial services connect to Ethereum's unified backend
  • Easy integration: Permissionless, modular DeFi enables rapid product development
  • Transparency: Auditable architecture builds trust without custody risks
  • Control: Immutable infrastructure gives companies end-to-end ownership

Early success metrics from Coinbase's crypto-backed loans powered by Morpho:

  • 9,100+ borrowers
  • $510M+ in loans originated
  • $860M+ in cbBTC collateral

The model represents a shift where consumer apps maintain familiar frontends while leveraging Ethereum's financial rails in the background.​ This approach could enable fintech companies to build scalable products in weeks rather than years, while reducing reliance on expensive legacy financial infrastructure.​

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