Morpho Raises US$175 Million to Boost On-Chain Credit in DeFi Market
Morpho Association has raised US$175 million in a funding round co-led by Paradigm, a16z crypto, and Ribbit Capital, with additional participation from Apollo Funds, Circle Ventures, and other investors. The funds, secured in June 2026, will support the expansion of Morpho's on-chain credit products and deeper integrations, reflecting growing institutional interest in blockchain-based lending. Morpho reported over US$11 billion in deposits on its platform, underscoring the demand for decentralized lending and liquidity solutions.
The decentralized finance (DeFi) market is experiencing significant growth, with the global market projected to reach US$1,236.50 billion by 2035, expanding at a 45.7% CAGR during 2026-2035. Lending and borrowing protocols dominate the sector, accounting for 25%-30% of total DeFi activity. North America leads the market with a 35%-37% share, while Asia-Pacific is the fastest-growing region, driven by mobile-first financial ecosystems and digital-asset penetration.
Recent developments in the DeFi space include regulatory advancements in the U.S., such as the SEC's five-year exemption framework for tokenized stocks, and institutional expansions by companies like Kamino, Firelight, and Binance. In Japan, SBI Holdings and the Solana Foundation are building an on-chain financial market, with initiatives covering JPYSC stablecoins, tokenized real-world assets, and cross-border settlement. Additionally, Ripple and SBI Group launched the Ripple USD (RLUSD) stablecoin in Japan following regulatory approval.
Key players in the DeFi market include Avalanche BVI Inc., Compound Protocol, and CoW DaO, among others. Recent mergers and acquisitions, such as IRF's acquisition of Nomina and Nium's purchase of Cypher, highlight the strategic consolidations shaping the industry. The market is poised for substantial growth, driven by technological advancements, institutional participation, and regulatory developments.