Gelato, a web3 developer cloud platform, has partnered with Morpho, a decentralized lending protocol, to launch Embedded Crypto-Backed Loans. This partnership allows Wallets, Brokers, and Fintech Apps to instantly borrow stablecoins like USDC using crypto assets as collateral. The borrowing flow is simple, Web2-like, non-custodial, and fully onchain. The platform uses Gelato’s Smart Wallet SDK and Morpho’s permissionless lending markets to provide a secure borrowing flow. Crypto-backed loans are fully non-custodial and onchain, governed by smart contracts. Gelato’s Smart Wallet SDK handles account abstraction, one-click onboarding, and gas sponsorship, enabling modern, web2-style user experiences. Gelato plans to introduce new security and recovery features later this year, including passkey authentication, multi-signer two-factor approvals, and onchain recovery modules tied to email or social logins. Embedded Crypto-Backed Loans are now available in beta on Polygon, Arbitrum, Optimism, and Scroll, with support for Katana coming soon.