Morpho Raises $175M for Open Credit Network

Morpho, an on‑chain lending protocol, secured $175 million in a funding round co‑led by Paradigm, a16z Crypto and Ribbit Capital, the Morpho Association announced. The round values the protocol at up to $2 billion.

The financing included participation from Apollo Funds, Circle Ventures, VanEck, Ledger Cathay, Variant, Wintermute Ventures, Prelude, IOSG, Hashkey, Mirana, NJJ Capital, SBI Group and Bpifrance. The Morpho Association described the round as its fourth institutional funding event since 2021 and among the largest financing rounds in decentralized finance.

Funds will be used to build what Morpho calls an open credit network to connect lenders and borrowers across traditional and crypto financial institutions. The company plans to deepen technical and commercial integrations with strategic partners and to expand its credit infrastructure.

Investors bought MORPHO tokens as the vehicle for the investment. Purchases were made at an average monthly token price, so the exact cost depended on when commitments were made. MORPHO token prices rose more than 10% after the announcement.

Morpho operates blockchain-based lending and borrowing markets that let users create lending pools with customized risk parameters. The platform allows banks, asset managers, fintechs, exchanges and wallets to set market terms rather than follow a single protocol’s default rules. Morpho co‑founder Paul Frambot described the platform as ‘the open credit network for the world, connecting those with excess capital to those who need financing, globally.'

The protocol reported more than $11 billion in deposits and counts several large crypto firms as institutional users, including Coinbase, Binance, Kraken, Bitwise, Galaxy and Anchorage Digital.

Frankie, a general partner at Paradigm, predicted that over time ‘every bank, asset manager, and pension fund will want exposure to on‑chain credit markets.' Guy Wuollet, a general partner at a16z Crypto, said Morpho’s technology is already used by leading financial institutions and highlighted its security and simplicity in lending and borrowing.

Ribbit Capital previously led a $50 million strategic round for Morpho in 2024. The use of a token purchase structure in the new round and the wide group of institutional participants are facts noted by the company.

Morpho said it will focus on partnership and product development work that enables external institutions to set credit terms and integrate Morpho markets into broader financial workflows.