Coinbase.com is abruptly adding support for one decentralized finance (DeFi) lending protocol built on Ethereum (ETH) and Base.

In a new announcement, Coinbase says it's adding support for borrowing and lending project Morpho (MORPHO), causing the digital asset to rise in price.

Coinbase is adding support for one DeFi lending protocol and one Layer-2 (L2) scaling solution.

Specifically, the US-based crypto exchange platform is integrating Morpho (MORPHO) and Base by Coinbase, the company says in an announcement.

"Coinbase will be adding support for borrowing and lending on Morpho, a DeFi protocol on Ethereum focused on efficient and scalable lending primitives, and Base by Coinbase, an L2 scaling solution powered by Ethereum."

The addition of MORPHO will see the digital asset become available for trading on Coinbase Pro by February 28th at 4:00 PM PST.

"Coinbase Pro users can begin placing orders in the ZRX/BTC, ZRX/ETH, and ZRX/USD trading pairs in anticipation of the asset's arrival on the exchange. The asset will become available for trading on Coinbase at 11:00 AM PST on Wednesday, March 1st, if the asset meets the required listing standards."

News of the addition saw MORPHO flying as the crypto asset went from a low of $2.05 on February 27th to a peak of $2.42 just a day later. MORPHO has since stabilized and is trading for $2.21 at time of writing, a 7.9% gain during the last 24 hours.

The integration of Base by Coinbase will see the L2 scaling solution become available for deposits on February 28th at 9:00 AM PST, while withdrawals will become available the following day at 2:00 PM PST.

"Once deposit processing has been completed, Coinbase will announce the opening of Base trading pairs, which will be available in limited quantities at first. Members of the Coinbase community can register their interest in preferred Base trading pairs via an online form."

At the beginning of February, Coinbase announced that it's launching a new initiative to support the development of L2s, beginning with a $50 million fund to provide seed-stage investments in early-stage L2 projects.

The company also plans to build an L2 ecosystem that will offer a variety of products and services, such as a developer program, technical documentation, and community events.

"We believe that L2s are a critical technology for scaling blockchain networks and making them more accessible to the mainstream. We're excited to be investing in this space and helping to build the future of Web3," said Coinbase CEO Brian Armstrong.

Coinbase's involvement in the L2 market is a natural progression for the company, which has been a leading force in the crypto industry since its founding in 2012.

The company's mission is to increase economic and technical opportunity in a fair and efficient manner, and its L2 initiative is a key part of that vision.

"We are committed to supporting the development of open and decentralized technologies that can empower individuals and communities around the world," said Armstrong.

Coinbase's L2 initiative is sure to have a significant impact on the crypto industry in the years to come. The company's involvement in this space is a testament to its belief in the transformative potential of blockchain technology.