DeFi lender Morpho nears $2B valuation after $175M raise led by Paradigm and a16z

Decentralized lending platform Morpho has secured $175 million in fresh 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 highlights rising interest in DeFi infrastructure as traditional financial institutions continue to explore blockchain-based financial services. Morpho allows users to build customized lending markets, giving participants greater control over risk management and lending conditions.

Founded in 2021 by French entrepreneur Paul Frambot and three co-founders, Morpho has emerged as one of the fastest-growing lending protocols in the sector, with approximately $6.6 billion in total value locked, per DefiLlama. The platform has gained adoption from leading crypto firms, including Coinbase, Kraken, Anchorage Digital, and Galaxy Digital.

According to Frambot, the company is increasingly focused on attracting institutional participants as banks and asset managers look to integrate decentralized finance products into their financial strategies.