Morpho Association raised $175 million in a funding round led by Paradigm, a16z crypto and Ribbit Capital, as the lending protocol works to build a broader open credit network for DeFi and traditional finance.
The round also included Apollo Funds, Circle Ventures, VanEck, Ledger, Cathay Innovation and other strategic investors. As previously reported in June, the raise was one of the largest funding rounds in decentralized finance and was structured as a token purchase. The deal valued Morpho at about $2 billion.
Morpho targets open credit infrastructure
Morpho said the raise supports its goal of building an open credit network for the world. The project wants to connect lenders and borrowers through shared infrastructure that fintechs, crypto exchanges and financial firms can add to their own products.
Meanwhile, this model can help capital move across platforms and regions with fewer barriers. It does not aim to replace banks, fintechs or exchanges. Instead, it wants to act as a credit layer that those companies can use to offer lending, borrowing and yield tools.
Morpho already powers crypto-facing platforms, including Coinbase, Robinhood and Kraken, according to its June update. The longer-term plan is to become a neutral layer that companies can build on while keeping their own user relationships.
The project also says its model could reduce the cost of trust between lenders and borrowers. In practical terms, that means it wants to narrow the gap between what lenders earn and what borrowers pay.
Deel and Coinbase expand Morpho use cases
Morpho’s June update also pointed to Deel as a new network participant. Deel is using stablecoin rewards for idle balances, starting in Argentina and expanding to other markets. The product gives contractors access to dollar-denominated balances and rewards inside the same platform they use to get paid.
Deel said its stablecoin wallet lets contractors hold, earn and spend from one app, without using a separate crypto exchange. Stripe said Deel supports more than 40,000 businesses and 1.5 million workers worldwide, while the wallet first launched in Argentina before planned expansion across other regions.
Deel’s wallet uses DLUSD, a dollar-backed stablecoin balance, while the Morpho-powered earn product runs on Tempo. The same update said workers do not need to manage private keys or interact with the underlying infrastructure.
Coinbase also remains part of Morpho’s wider distribution path. Morpho said Coinbase’s High Yield DeFi earn product has passed $100 million in deposits. As previously reported, Coinbase already uses Morpho-powered lending tools in products that let eligible customers borrow USDC against crypto collateral.
Zama brings privacy tools to Morpho vaults
Morpho’s June update also named Zama as part of its push into confidential onchain finance. Zama’s confidential tokens let users allocate funds to Morpho Vaults and earn yield without showing wallet details or strategy on public blockchains.
According to Morpho, more than $10 million in Confidential USDC entered Morpho Vaults through Zama within the first four days of launch. This type of privacy tool matters for institutions that want onchain execution but also need to protect wallet identity, positions and strategy.
In addition, Morpho will soon be accessible through BitGo, a U.S. qualified custodian. Bitso’s MXNB-denominated markets and vaults are also available on Morpho and curated by Gauntlet, while HashKey plans to use Morpho as onchain credit infrastructure.
Morpho also said payment-receivable-backed collateral from Huma Finance is now available on the network. The project has also joined the Crypto Council for Innovation’s Vault Coalition, which focuses on policy education around onchain asset management.
Institutions move from tests to live products
Morpho said its Vault Summit in New York, co-hosted with S&P Global at the New York Stock Exchange, showed a shift in how institutions discuss onchain products. The company said the discussion has moved from basic tests toward questions about how to ship production-grade products.
Still, Morpho also signaled that adoption remains early. The update cited co-founder Merlin Egalité’s view that “we are still at the flat part of the institutional adoption S-curve.” That statement adds caution to the company’s wider growth message.
At the same time, the funding gives Morpho more room to expand integrations, improve support and build tools for firms that want credit products inside their own apps. The project’s current partners show demand from crypto exchanges, payroll platforms, custodians and institutional service providers.
