- Morpho raised $175 million in a funding round led by Paradigm, a16z crypto, and Ribbit Capital.
- The raise values the protocol at up to $2 billion.
- Morpho plans to expand its lending infrastructure and institutional partnerships.
- The protocol reports more than $11 billion in deposits.
- Coinbase, Binance, Kraken, Galaxy, and Bitwise are among its users.
One of DeFi's Largest Fundraises
Onchain lending protocol Morpho has secured $175 million in a major funding round co-led by Paradigm, a16z crypto, and Ribbit Capital.
The investment values the protocol at up to $2 billion and ranks among the largest fundraising events in decentralized finance. Additional participants include Apollo Funds, Circle Ventures, VanEck, Wintermute Ventures, HashKey, SBI Group, Variant, and several other institutional investors.
The funding was structured as a token purchase, with investors acquiring MORPHO tokens based on the protocol's average monthly market price.
Building an Open Credit Network
Morpho positions itself as an open infrastructure layer for lending and borrowing markets.
The platform allows users and institutions to create customized lending pools with flexible risk parameters rather than relying on a single protocol structure. This approach has attracted a growing list of institutional participants seeking greater control over credit markets.
Co-founder Paul Frambot said the long-term goal is to connect capital providers and borrowers globally through an open credit network powered by blockchain technology.
Institutional Adoption Accelerates
Morpho says its protocol now holds more than $11 billion in deposits and serves a range of major industry participants.
Institutional users reportedly include Coinbase, Binance, Kraken, Bitwise, Galaxy, and Anchorage Digital. The company plans to use the new capital to strengthen both technical integrations and commercial relationships with strategic partners.
Investors view the protocol as one of the leading candidates to bring traditional credit markets onchain.
Growing Interest in Onchain Lending
The funding round reflects increasing investor confidence in decentralized credit infrastructure.
Paradigm's Frankie argued that banks, pension funds, and asset managers will eventually seek exposure to blockchain-based credit markets. Meanwhile, a16z crypto highlighted Morpho's growing adoption among financial institutions as evidence of the protocol's expanding role in the sector.
The latest raise follows a previous $50 million strategic round led by Ribbit Capital in 2024, further strengthening Morpho's position as a major player in decentralized lending.
