Morpho raises $175M to build world’s biggest open credit network

Morpho announced a $175 million token‑sale on June 9, 2026, pushing its valuation past $2 billion and marking what co‑founder Merlin Egalite calls “the largest raise in DeFi history” [2]. The round was co‑led by Paradigm, a16z crypto and Ribbit Capital, with participation from Apollo Funds, Circle Ventures, VanEck, Ledger Cathay and several other institutional investors [2].

The funding will be used to deepen commercial and technical integrations with banks, asset managers and large platforms, aiming to embed Morpho’s lending tools into existing financial products rather than building isolated protocols [1][2]. Morpho’s modular design lets institutions create bespoke lending pools—setting their own collateral standards, risk limits and interest‑rate models—making it attractive to traditional finance players seeking on‑chain credit infrastructure [2][3]. Already, Coinbase has used Morpho smart contracts to originate more than $2.17 billion in corporate USDC loans, and other crypto exchanges such as Kraken integrate the protocol for non‑custodial lending products [1][4].

Morpho’s total value locked has surged to around $6.6 billion, with $10 billion in deposits, reflecting rapid adoption by both crypto‑native and traditional finance users [3]. The protocol’s growth comes as venture capital in crypto concentrates on late‑stage infrastructure projects; Q1 2026 data show Series C and later rounds jumped 1,020 % YoY, accounting for 28.4 % of total crypto VC capital across just nine deals [1]. This concentration underscores why Morpho is positioning itself as the “credit infrastructure layer” that banks, asset managers and fintechs can build on, rather than trying to replace existing lenders [1].

If Morpho can convince more institutions to trust its risk controls and market design, it could become a backbone for on‑chain credit across the $200 trillion global credit market. The open question is whether the protocol’s token‑sale structure and reliance on institutional capital will sustain momentum amid a broader market downturn.