Morpho, a crypto lending protocol, raises $175 million from major investors including a16z crypto and Paradigm
Morpho, a decentralized finance protocol for blockchain-based lending and borrowing, announced a $175 million funding round led by Paradigm, Ribbit Capital, and a16z crypto, valuing the company at up to $2 billion. The funding reflects growing institutional interest in crypto and DeFi as traditional financial institutions increasingly explore digital assets. The raise highlights Morpho's rapid growth in the competitive decentralized lending market, where it competes with established players like Aave.
Morpho, a decentralized finance (DeFi) protocol founded by 25-year-old Paul Frambot and three other French cofounders, announced a $175 million funding round led by major crypto investors Paradigm, Ribbit Capital, and Andreessen Horowitz's digital assets arm. Additional investors included Apollo Funds, Circle's venture unit, and VanEck. The funding values Morpho at up to $2 billion and reflects the protocol's rapid growth in the competitive DeFi lending space. Morpho allows users to create their own blockchain-based lending markets with customizable risk parameters, differentiating it from competitors like Aave, which dominates the market with $12.5 billion in locked assets compared to Morpho's $6.6 billion. The funding round exemplifies broader trends of institutional adoption of crypto and DeFi, as traditional financial institutions like BlackRock, the New York Stock Exchange's parent company, and major banks increasingly explore digital assets and blockchain-based financial services.
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Exclusive: The startup that’s dressing up crypto for Wall Street raises $175 million in a round led by a16z crypto, Paradigm, and Ribbit Capital
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