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The collaboration introduces Morpho Vaults to Ethereum, Base and Arbitrum natively within SafePal App, coupled with a Walletdrop campaign to boost cold-storage adoption and security
Singapore, January 8, 2026, Press release – SafePal, a non-custodial crypto wallet suite trusted by 25 million+ users across 200+ blockchains, today announced a two pronged initiative with leading decentralized lending network Morpho to expand access to risk-adjusted, transparent stablecoin yield for self-custody users. The move comes strategically amidst market volatility and user concerns from the $93M collapse of Stream Finance and depeg of its XUSD stablecoin, which exposed systemic risks associated with opaque yield mechanisms.
The first part of the initiative includes the native integration of Morpho Vaults with the latest SafePal V4.10.6 app update, providing users with seamless access to yield on USDC and USDT stablecoins from Morpho on Ethereum, Base and Arbitrum networks via the SafePal yield aggregator.
“The XUSD depeg and aftermath highlighted how opaque, off-chain yield structures can introduce significant counterparty and systemic risk,” said Veronica Wong, CEO and Co-founder of SafePal. “By integrating Morpho, we’re giving users access to decentralized, fully on-chain, transparent, and battle-tested stablecoin yield reinforcing our non-custodial ethos while positioning our wallet suite as a safe haven against market uncertainty and contagion.”
The Morpho Vaults integrated are curated by established decentralized finance (DeFi) firms Steakhouse and Gauntlet, allowing depositors to access risk-adjusted yield derived from borrowing activity backed by blue-chip, highly liquid collateral.
Paul Frambot, CEO and co-founder of Morpho, said: “Stablecoins don’t need to sit idle, even in self-custody. Integrating Morpho Vaults into SafePal brings open, on-chain lending infrastructure directly to SafePal users, enabling them to earn yield while remaining fully non-custodial, on-chain, and transparent. This is how we bring on-chain lending to the world.”
To further strengthen user security and encourage long-term self-custody, SafePal and Morpho are also launching a Walletdrop campaign as the second part of the initiative, where an exclusive collection of 500 co-branded hardware wallets will be awarded to participants depositing in the Morpho USDT and USDC vaults offered within SafePal Earn.
The special collection is based on the SafePal X1, which is the wallet suite’s latest open source and bluetooth model, with unique activation perks being planned (such as boosted yield opportunities on Morpho Vaults within SafePal).
“Unfortunate incidents like the recent $36M Upbit hack highlight that cold storage usage remains far below where it should be,” Veronica also said. “The Morpho Walletdrop aims to grow hardware wallet usage while maximizing security, which should be extremely synergistic, especially for long-term and passive strategies like stablecoin staking.”
Successful Walletdrops with different tailored approaches were also recently executed with blockchain ecosystems and DeFi platforms including TRON, Pancakeswap, 1inch, and Jumper Exchange, offering an alternative to traditional token airdrops by rewarding loyal self-custody users while minimizing bot activity and opportunistic farming.
The SafePal wallet suite also recently completed the full transition for its hardware wallet line from EAL5+ to EAL6+ security chipsets to further enhance security, and also revamped the SafePal aggregator to provide seamless access to reliable yield options and providers.
About SafePal
Founded in 2018, SafePal is a next generation non-custodial crypto wallet suite backed by Animoca Brands, Binance and Superscrypt. The suite empowers access to decentralized and centralized finance on 200+ blockchains across its hardware, software, and browser extension wallet solutions.
Encompassing a diverse mix of crypto asset management solutions like cross-chain swapping, trading and yielding tools, centralized exchange (CEX) mini programs, a banking gateway and Mastercard for users — SafePal serves over 25 million users globally across 200+ regions and countries in 16 languages.
SFP is a decentralized BEP-20 and ERC-20 token fuelling the SafePal ecosystem with various utilities such as discounts on SafePal products, staking boost and airdrop rewards, seamless conversion to gas tokens, and more.
Stay informed about SafePal here.
About Morpho
Morpho is the universal lending network with $10B+ in deposits. Businesses can connect to Morpho's open infrastructure to power any lending or borrowing use case at scale, including embedded crypto-backed loans and custom yield solutions.
To learn more, visit https://morpho.org/.
