Morpho raises $175M to take global credit on-chain

The bottom line. The French decentralized lending protocol Morpho announced on June 10, 2026 a $175 million raise, co-led by Paradigm, a16z crypto and Ribbit Capital, at a valuation of up to $2 billion. The twist: investors bought the MORPHO token, not equity. The signal is clear: on-chain credit is now targeting banks.

Key takeaways

• $175M raised, round co-led by Paradigm, a16z crypto and Ribbit Capital (Fortune, retrieved 2026-06-16).
• Valuation of up to $2B, via a purchase of MORPHO tokens at the monthly average price — not a traditional equity round (CoinDesk, 2026).
• Over $11B in deposits on the protocol, used by Coinbase, Galaxy, Anchorage Digital and Bitwise (The Block, 2026).
• A hybrid investor mix: crypto natives (Paradigm, a16z, Variant), asset managers (Apollo, VanEck, SBI) and French capital (Bpifrance, Xavier Niel's NJJ).

What Morpho does

Morpho is an open, decentralized credit network. In plain terms: a protocol that lets you lend and borrow crypto assets without a banking intermediary, relying on smart contracts deployed on the blockchain. The technical core, Morpho Blue, is a minimalist lending engine that other players build on top of.

Founded in Paris by Paul Frambot, the company doesn't just serve individuals. Its real target is institutions. Coinbase, Binance, Ledger, Gemini and Bitpanda use its infrastructure to offer savings and yield products integrated into their own applications. Morpho provides the plumbing; its partners handle the customer relationship.

This three-layer architecture — lending markets, vaults curated by managers like Gauntlet or Steakhouse, and an API for developers — explains the stated positioning: becoming the credit infrastructure that banks and asset managers can plug into without building their own. The protocol places heavy emphasis on security, with audits by ChainSecurity, OpenZeppelin and Trail of Bits, and formal verification by Certora. It's the bare minimum to win over a regulated player.

Funding round details

• Amount: $175 million.
• Announcement date: June 10, 2026.
• Type: growth round in MORPHO tokens (investors buy the token at the monthly average price), not in equity.
• Co-leads: Paradigm, a16z crypto (Andreessen Horowitz), Ribbit Capital.
• Participants: Apollo, Circle Ventures, VanEck, Variant, Wintermute Ventures, Prelude, IOSG, Hashkey, Mirana, SBI Group, Bpifrance, Ledger Cathay and NJJ Capital (Xavier Niel).
• Valuation: up to $2 billion.
• Founder: Paul Frambot, CEO and co-founder (Morpho Labs, France).
• Traction: over $11 billion in deposits, roughly $3.5 billion in outstanding loans.
• History: following an $18 million round led by a16z and Variant, then $50 million led by Ribbit in 2024.
• Use of funds: accelerate development and position Morpho as the technical infrastructure for banks and asset managers.

Why this raise matters

First, its size. Raising $175 million in a still-cautious crypto VC market, at a valuation of up to $2 billion, puts Morpho in a category of its own. Barely two months earlier, the protocol crossed the billion-dollar valuation mark. Doubling in eight weeks is no market footnote: it's a change of status.

Then by the structure of the round, which is the most interesting point. The investors did not take equity: they bought the MORPHO token, at the monthly average price. This mechanism says a lot. It aligns institutional funds — Apollo, VanEck, SBI — with the protocol's native asset rather than with a company. It's a direct bet on network usage, not on an IPO. When traditional asset managers accept this format, it means token exposure has become a financial instrument they know how to fit into their portfolios.

Finally, by the cast. The cap table mixes three worlds that barely spoke to each other three years ago: crypto-native funds (Paradigm, a16z crypto, Variant), traditional finance (Apollo, VanEck, Japan's SBI), and heavyweight French capital (Bpifrance and Xavier Niel's NJJ). This convergence is the real message. Quote from Frankie, of Paradigm: "In the years ahead, every bank will want exposure." The stated bet is that on-chain credit infrastructure becomes a supplier to the banks, not their gravedigger.

What this raise reveals about the crypto market in 2026

Beyond Morpho, this round sheds light on three underlying dynamics in the sector this year.

On-chain credit moves from speculation to infrastructure

DeFi in 2021 sold yield to retail investors chasing quick gains. DeFi in 2026 sells plumbing to institutions. Morpho isn't chasing the end user: it aims to be the invisible engine behind savings products from Coinbase or Ledger. This shift to an "infrastructure as a service" model is the trend now shaping the sector's strongest fundraises.

Cap tables now blend crypto and traditional finance

Seeing Apollo, VanEck and SBI co-invest alongside Paradigm and a16z would have been anything but obvious two years ago. The signal for founders: traditional asset managers are no longer watching crypto from the sidelines — they're taking positions in tokens. For anyone raising funds in Web3, the line between "crypto" and "TradFi" investors is blurring, and with it, certain governance and compliance requirements move up a notch.

France still has a card to play in decentralized finance

Morpho is French, and its round brings in Bpifrance and Xavier Niel alongside the biggest US funds. In a DeFi ecosystem largely dominated by the United States, seeing a French protocol reach $11B in deposits and raise from Paradigm and a16z confirms that France still produces champions in infrastructure. What to watch: these players' ability to turn technical traction into durable revenue — the real test for the next eighteen months.

FAQ

How much has Morpho raised, and from whom?

Morpho has raised $175 million, announced on June 10, 2026. The round was co-led by Paradigm, a16z crypto, and Ribbit Capital, with participation from Apollo, VanEck, Circle Ventures, SBI, Bpifrance, and Xavier Niel's NJJ Capital, among others.

What is Morpho's valuation?

The round values Morpho at up to $2 billion, according to CoinDesk. The protocol crossed the $1 billion valuation mark roughly two months before the announcement — a doubling in a very short time.

What does Morpho actually do?

Morpho is a decentralized credit network that lets users lend and borrow crypto assets without a bank. Its infrastructure (Morpho Blue, vaults, API) is used by institutions such as Coinbase, Binance, Ledger, and Gemini to offer savings and yield products.

What traction does the protocol have?

Morpho exceeds $11 billion in deposits and around $3.5 billion in outstanding loans, according to The Block and Maddyness. The protocol is used by institutional players such as Galaxy, Anchorage Digital, and Bitwise.

Why a token round instead of equity?

Investors bought the MORPHO token at the monthly average price, not equity stakes. This format aligns the funds with protocol usage rather than a stock market exit, and signals that traditional asset managers are now including token exposure in their portfolios.

Sources

• Maddyness, "Crypto: Morpho brings in Andreessen Horowitz, Ledger and Xavier Niel to raise $175 million", retrieved 2026-06-16, https://www.maddyness.com/2026/06/10/crypto-morpho-embarque-andreessen-horowitz-ledger-et-xavier-niel-pour-lever-175-millions-de-dollars/
• Fortune, "Morpho raises $175 million in a round led by a16z crypto, Paradigm, and Ribbit Capital", retrieved 2026-06-16, https://fortune.com/2026/06/09/morpho-fundraise-a16z-crypto-paradigm-ribbit-capital-175-million/
• CoinDesk, "a16z, Paradigm lead $175 million investment to move global credit markets onchain", retrieved 2026-06-16, https://www.coindesk.com/business/2026/06/09/a16z-paradigm-lead-usd175-million-bet-to-move-global-credit-markets-onchain
• The Block, "Morpho raises $175M co-led by Paradigm, a16z crypto and Ribbit Capital to build 'open credit network'", retrieved 2026-06-16, https://www.theblock.co/post/404111/morpho-raises-175m-paradigm-a16z-crypto-ribbit-capital
• Morpho, official website, retrieved 2026-06-16, https://morpho.org