Key Takeaways:
- Morpho raised $175M led by Paradigm, a16z crypto, and Ribbit Capital.
- Coinbase, Robinhood, and Kraken already use Morpho's lending infrastructure.
- Deel integrated Morpho to offer stablecoin yield to contractors in Argentina.
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Morpho raises $175M from Paradigm and a16z to scale onchain credit
Morpho Association raised $175 million to expand its onchain credit infrastructure, the DeFi lending protocol said Saturday. The round was led by Paradigm, a16z crypto, and Ribbit Capital, with participation from Apollo Funds, Circle Ventures, VanEck, Ledger, and Cathay Innovation.
"The funding will accelerate our work building an open credit layer that connects capital providers with borrowers across crypto and traditional markets," a Morpho spokesperson said. The protocol has already processed billions in lending volume through its marketplace model, which matches lenders with borrowers without intermediaries.
Coinbase, Robinhood, and Kraken have integrated Morpho's infrastructure to power crypto lending and yield products, the company said. Coinbase's High Yield DeFi earn product, built on Morpho, has exceeded $100 million in total deposits. Robinhood launched its own lending product using Morpho in the US, allowing eligible users to lend USDG stablecoins for an estimated annual yield of 7%, with insurance coverage arranged through Lloyd's of London and RELM.
Deel partnered with Morpho to offer stablecoin-based rewards on contractor account balances, starting in Argentina with plans for global expansion. Zama introduced confidential USDC deposits to Morpho Vaults, attracting more than $10 million in deposits within four days. The protocol also plans further expansion through partnerships with BitGo, Juno by Bitso, HashKey, and Huma Finance.
The funding arrives as financial institutions shift from experimental blockchain pilots toward real-world applications. Morpho co-organized Vault Summit NYC with S&P Global at the New York Stock Exchange, signaling growing institutional interest in blockchain-based credit markets. The protocol's infrastructure now supports lending, yield generation, and capital deployment across multiple blockchain networks, positioning it to compete with traditional credit systems as onchain finance gains traction.
This article is for informational purposes only and does not constitute investment advice.
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