Morpho raises $175M from Paradigm, a16z and Ribbit to build…

Morpho, the onchain lending protocol, has closed a $175 million funding round co-led by Paradigm, a16z crypto, and Ribbit Capital at a valuation of up to $2 billion — one of the largest fundraises in DeFi history. The investment was structured as a token purchase, with investors buying MORPHO at its average monthly price. The token surged more than 10% on the news.

The round drew a marquee roster of co-investors including Apollo Funds, Circle Ventures, VanEck, Wintermute Ventures, Hashkey, SBI Group, and Bpifrance, among others. It marks Morpho's fourth institutional raise since 2021, and Ribbit's second significant bet on the protocol — the firm also led Morpho's prior $50 million strategic round in 2024.

Why it matters

Morpho's pitch is structural: an open, permissionless credit layer where banks, asset managers, fintechs, and exchanges can build customized lending pools rather than conform to a single protocol's rules. With $11 billion in deposits and institutional users including Coinbase, Binance, Kraken, Bitwise, Galaxy, and Anchorage Digital already on the platform, the protocol is no longer a DeFi experiment — it is active credit infrastructure. Co-founder Paul Frambot framed the ambition plainly: "We're building the open credit network for the world, connecting those with excess capital to those who need financing, globally."

Market impact

Paradigm GP Frankie said every bank, asset manager, and pension fund will want exposure to onchain credit markets in the years ahead. a16z GP Guy Wuollet pointed to the simplicity and security of Morpho's technology as the driver pushing borrowing and lending forward.