Privy, the embedded wallet infrastructure company acquired by Stripe in 2025, just made a move that signals where fintech and DeFi are quietly merging. The company launched an “Earn on balances” feature that pipes Morpho’s non-custodial lending vaults directly into its API, letting any app offer yield on user deposits without touching a single DeFi protocol themselves.
Two names already using it: Deel, the global payroll platform, and Kraken. The latter has routed more than $500 million in combined stablecoin and BTC deposits through Privy’s integrations into Morpho vaults.
How the plumbing works
The technical backbone is Morpho’s ERC-4626 vaults. These are standardized smart contracts on Ethereum that pool user funds into lending markets to generate yield. The ERC-4626 standard matters because it creates a common interface. Any app that speaks the same language can plug in without custom engineering for each vault.
Privy’s API handles deposit, withdraw, and revenue sharing, routing funds to curated vaults vetted by independent risk managers. Those risk managers include Steakhouse Financial and Gauntlet. Sentora handles the vaults powering Deel’s integration specifically.
