Morpho Raises $175 Million to Expand Onchain Lending Network

Morpho, a decentralized lending protocol, has raised $175 million in a new funding round co-led by Paradigm, a16z crypto, and Ribbit Capital. The investment will support the company’s goal of building what it describes as an “open credit network for the world.”

The funding round values Morpho at up to $2 billion and ranks among the largest fundraising deals in decentralized finance in recent years. Additional investors include Apollo Funds, Circle Ventures, VanEck, Ledger Cathay, Variant, Wintermute Ventures, Prelude, IOSG, HashKey, Mirana, NJJ Capital, SBI Group, and Bpifrance.

Morpho Targets Growth in Onchain Credit Markets

Unlike traditional lending platforms, Morpho allows users and institutions to create customized lending and borrowing markets with their own risk settings. The platform is designed for banks, asset managers, fintech companies, crypto exchanges, and digital wallets that want greater control over lending terms.

Co-founder Paul Frambot said the project’s long-term vision is to connect capital providers with borrowers globally through open blockchain-based credit markets.

Institutional Adoption Continues to Grow

Morpho says it has surpassed $11 billion in deposits and already serves several major crypto firms, including Coinbase, Binance, Kraken, Bitwise, Galaxy and Anchorage Digital.

The investment was structured as a token purchase, with investors acquiring MORPHO tokens based on the average monthly market price at the time of participation. Following the announcement, the token’s price climbed more than 10% according to blockto price page.

Investors See Strong Future for Blockchain Lending

Paradigm partner Frankie said that banks, pension funds, and asset managers are increasingly expected to seek exposure to onchain credit markets in the coming years. Meanwhile, a16z crypto general partner Guy Wuollet noted that Morpho’s technology is already being adopted by leading financial institutions and continues to advance blockchain-based borrowing and lending services.

The latest raise also strengthens Ribbit Capital’s commitment to Morpho after leading the protocol’s previous $50 million strategic funding round in 2024.