Morpho raised $175 million in a funding round co-led by Paradigm, a16z crypto, and Ribbit Capital, the Morpho Association announced Tuesday. The round supports the protocol's development of what the company calls the 'open credit network for the world.' Fortune reported the round valued the protocol at up to $2 billion, and additional investors included Apollo Funds, Circle Ventures, VanEck, Ledger Cathay, Variant, Wintermute Ventures, Prelude, IOSG, Hashkey, Mirana, NJJ Capital, SBI Group, and Bpifrance. The raise marks Morpho's fourth institutional fundraise since 2021 and represents one of the largest funding rounds in DeFi history, according to the company.
Morpho Secures $175M Through Token Purchase at $2B Valuation
The investment was structured as a token purchase, with investors buying MORPHO at its average monthly price, Fortune said. The exact cost varied by when participants contributed. MORPHO prices surged over 10% following the news, according to The Block's price page. The round valued the protocol at up to $2 billion, Fortune first reported. Ribbit Capital previously led Morpho's $50 million strategic round in 2024.
Protocol Reports $11B in Deposits and Institutional User Base
Morpho offers blockchain-based lending and borrowing markets where users can create their own lending pools with customized risk parameters. The protocol has crossed $11 billion in deposits, the company said. Institutional users include Coinbase, Binance, Kraken, Bitwise, Galaxy, and Anchorage Digital. Co-founder Paul Frambot said, 'We're building the open credit network for the world, connecting those with excess capital to those who need financing, globally.'
Morpho Plans Technical and Commercial Integrations
The company said it will use the proceeds to deepen technical and commercial integrations with strategic partners and expand its credit infrastructure. Frankie, general partner at Paradigm, said, 'In the years to come, every bank, asset manager, and pension fund will want exposure to onchain credit markets.' Guy Wuollet, general partner at a16z crypto, added that Morpho's technology is already being used by some of the world's leading financial institutions. 'The simplicity and security of its technology continue to push borrowing and lending forward,' Wuollet said.
FAQ
What did Morpho announce on Tuesday?
Morpho announced it raised $175 million in a funding round co-led by Paradigm, a16z crypto, and Ribbit Capital. The Morpho Association made the announcement Tuesday.
How much are Morpho's total deposits?
Morpho reported it has crossed $11 billion in deposits. The protocol's institutional users include Coinbase, Binance, Kraken, Bitwise, Galaxy, and Anchorage Digital.
What was the structure of Morpho's funding round?
The investment was structured as a token purchase, with investors buying MORPHO at its average monthly price. Fortune reported the round valued the protocol at up to $2 billion.
