Morpho, a Paris-based start-up developing a decentralized protocol for crypto lending and borrowing on Ethereum, has successfully raised $50 million in new funding. This significant amount will help advance Morpho’s mission to establish financial infrastructure as a public good. The funding round saw participation from Ribbit Capital and various other strategic partners, contributing to Morpho’s growth and network expansion.
In previous developments, Morpho has gained attention for its innovative approach to decentralized finance. Earlier funding rounds were smaller in scope, and the company’s vision has evolved to focus more on creating a robust, layered financial system. With the latest funding, Morpho aims to cement its position in the industry, building on earlier successes and partnerships. This reflects a strategic shift from merely optimizing lending rates to becoming a foundational infrastructure for the financial ecosystem.
Investment and Strategic Partners
Ribbit Capital’s investment links Morpho to Ribbit’s extensive global network of portfolio companies, including prominent names like Revolut, NuBank, Coinbase, Robinhood, Mercado Libre, Figure, and Uniswap. The participation of more than 40 other firms, including a16z crypto, Coinbase Ventures, Variant, Pantera, Brevan Howard, BlockTower, and Kraken Ventures, highlights the broad-based support for Morpho’s vision.
Ribbit Capital’s investment in Morpho connects it to Ribbit’s global network of portfolio companies, including Revolut, NuBank, Coinbase, Robinhood, Mercado Libre, Figure, and Uniswap.
Utilization of Funds
The fresh capital will enable Morpho to leverage industry leaders’ expertise and support its vision of an open, layered financial system. The company plans to expand its ecosystem, offer grants, and position itself as a leading infrastructure for decentralized finance (DeFi), institutional, and fintech lending applications. This move aligns with Morpho’s goal of becoming a decentralized infrastructure for a global, internet-native financial system.
The company believes its protocol has the potential to become a decentralised infrastructure for a global, internet-native financial system.
Morpho initially launched with its primary product, Morpho Optimizer, which improved interest rates on Aave and Compound. This has evolved into a broader financial infrastructure that features a network of purpose-built protocols layered on a shared base layer, inspired by the early internet’s layered approach. Morpho Blue, a new and separate protocol, serves as a permissionless lending protocol designed for risk management and specialized products. Further layers, like Morpho Vaults, can be added to offer diverse risk profiles while maintaining the same foundational base layer.
Morpho’s protocol now features a network of purpose-built protocols layered on a shared base layer, inspired by the early internet’s layered approach.
Morpho’s transition from an application to an infrastructure provider is exemplified by the rapid adoption of Morpho Blue, which exceeded $1.7 billion in deposits on Ethereum within six months and $120 million on Base in under a month. This shift underscores Morpho’s growing influence and capacity to offer diverse and resilient financial solutions.
With the new funding and strategic partnerships, Morpho is well-positioned to transform the landscape of decentralized finance. The company’s innovative approach and layered protocol system offer promising potential for future developments. Investors and stakeholders are optimistic about Morpho’s ability to deliver on its ambitious plans, making it a key player in the evolving financial ecosystem.
