Morpho Raises $175M to Expand DeFi Lending Network

 

Morpho, a leading decentralized finance lending protocol, has raised $175 million in a funding round led by Paradigm, a16z crypto, and Ribbit Capital. Other firms involved in the round include Apollo Funds, Circle Ventures, VanEck, Ledger Cathay, Variant, Wintermute Ventures, Prelude, IOSG, HashKey, Mirana, NJJ Capital, SBI Group, Bpifrance, and Bam Azizi.

 

 

With the funds raised, Morpho aims to further deepen its technical and commercial integrations with strategic partners and continue its mission of developing and strengthening the on-chain infrastructure businesses need to build programmable credit products.

 

“The true value of finance has always been held back by outdated infrastructure, fragmented systems, and extractive intermediaries,” says Paul Frambot, co-founder of Morpho. “We started Morpho to change that. We’re building the open credit network for the world, connecting those with excess capital to those who need financing globally.”

 

About Morpho 

Morpho is a leading decentralized, permissionless lending protocol operating across Ethereum, Base, and other EVM-compatible blockchain networks. Launched in 2021, Morpho aims to efficiently connect lenders and borrowers globally through its decentralized credit network.

 

Morpho claims to have facilitated more than $11 billion in deposits since its launch. Its decentralized lending platform is currently used by several institutional clients, including Bitwise, Galaxy, Anchorage Digital, Ledger, Trezor, Bitpanda, Coinbase, Kraken, and Binance. In total, Morpho has raised more than $244 million, with a valuation of approximately $2 billion.

 

The State of DeFi Lending

On-chain lending remains one of the largest and most mature sectors in decentralized finance. According to data from DeFiLlama, the total value locked in DeFi lending across more than 600 protocols stands at approximately $35.5 billion to $35.8 billion, with Aave, Morpho, and SparkLend holding the largest market shares in the sector.

 

Institutional adoption in DeFi lending has also accelerated significantly, with blockchain protocols such as Morpho launching Morpho Blue and MetaMorpho vaults, which allow easier integration of the Morpho platform with other centralized finance and institutional platforms. SparkLend has also launched dedicated products targeting institutional clients.

 

Several other companies, including Gemini, Crypto.com, Fireblocks, Bitwise, J.P. Morgan, and VanEck, have also become involved in institutional DeFi lending through partnerships or the launch of DeFi lending products.