Blockchain-based lending protocol Morpho said it raised $175 million in a funding round co-led by Paradigm, a16z crypto and Ribbit Capital, as investors bet credit markets will move increasingly on-chain.
The round also included Apollo Funds, Circle Ventures, VanEck and Ledger Cathay, according to a post on the Morpho blog.
Morpho operates an open credit network that enables institutions and fintech companies to create lending products on blockchain rails. The protocol has over $11 billion in deposits and is used by institutional clients including Bitwise, Galaxy, and Anchorage Digital, as well as crypto exchanges Coinbase, Kraken, and Binance.
The rise highlights interest in blockchain-based financial infrastructure by banks, asset managers and other traditional financial firms exploring tokenized assets and on-chain settlement systems.
Unlike many crypto projects that seek to replace traditional finance, Morpho is positioning itself as an infrastructure provider that works with existing institutions. The company said its network can help unify fragmented credit markets and support programmable credit products at scale.
Morpho said it will use the funds to develop its institutional lending infrastructure to create programmable lending products.
