Decentralized lending platform Morpho has secured $175 million in new funding from investors including Paradigm, Ribbit Capital and a16z crypto, giving the protocol a valuation of up to $2 billion. The round also attracted participation from Apollo Funds, Circle Ventures and VanEck, Fortune reported Tuesday.
The investment underlines the increasing interest in DeFi infrastructure as traditional financial institutions continue to explore blockchain-based financial services. Morpho allows users to build customized credit markets, giving participants greater control over risk management and credit terms.
Founded in 2021 by French entrepreneur Paul Frambot and three co-founders, Morpho has become one of the fastest-growing lending protocols in the industry, with a total value of approximately $6.6 billion, per DefiLlama. The platform has been adopted by leading crypto companies including Coinbase, Kraken, Anchorage Digital and Galaxy Digital.
According to Frambot, the company is increasingly focusing on attracting institutional participants as banks and asset managers look to integrate decentralized finance products into their financial strategies.