French Crypto Startup Morpho Secures €46.1M in New Funding Round

Paris-based crypto lending startup Morpho has announced the successful completion of a new funding round, raising €46.1 million (approximately $50 million) to further develop its decentralized protocol for crypto lending and borrowing on Ethereum. This significant investment was led by Ribbit Capital, with participation from several strategic partners, to enhance Morpho's network decentralization and advance its mission of making financial infrastructure a public good.

The fresh capital injection links Morpho to Ribbit Capital's extensive global network of portfolio companies, which includes renowned names such as Revolut, NuBank, Coinbase, Robinhood, Mercado Libre, Figure, and Uniswap. The involvement of Ribbit Capital not only brings financial resources but also strategic support and a vast array of industry connections that can drive Morpho's growth and innovation.

In addition to Ribbit Capital, the funding round saw participation from a diverse group of investors, including a16z crypto, Coinbase Ventures, Variant, Pantera, Brevan Howard, BlockTower, Kraken Ventures, and over 40 other firms. These investors will play a crucial role in shaping the future trajectory of Morpho and supporting its vision for a decentralized, open financial system.

Strategic Use of Capital

The newly raised funds will enable Morpho to leverage the expertise and influence of industry leaders who share its vision of an open, layered financial system. The company aims to utilize this capital to drive its growth and decentralization efforts, positioning its protocol as a foundational infrastructure for a global, internet-native financial ecosystem.

Morpho is confident that its protocol has the potential to become a decentralized infrastructure for a wide range of financial applications, spanning DeFi, institutional, and fintech lending. The company plans to expand its ecosystem, offer grants, and position itself as a leading infrastructure provider in the rapidly evolving world of decentralized finance.

Evolution of Morpho

Initially launched with its flagship product, Morpho Optimizer, the company aimed to enhance interest rates on platforms like Aave and Compound. Over time, Morpho has evolved into a standalone financial infrastructure, featuring a network of purpose-built protocols layered on a shared base layer. This layered approach, inspired by the early days of the internet, promotes open innovation, resilience, and value creation.

The transition from Morpho Optimizers—peer-to-peer layers built on lending pools like Aave and Compound—to Morpho Blue marks a significant shift for the company. Morpho Blue is a new, independent protocol that serves as a permissionless lending platform designed for risk management and specialized financial products.

In addition to Morpho Blue, the company has introduced Morpho Vaults, modular layers that can be added to provide diverse risk profiles and specialized lending and borrowing options, all while sharing the same foundational base layer. This modular and flexible structure underscores Morpho's commitment to creating an open and resilient financial infrastructure.

The company's shift from application to infrastructure is further highlighted by the rapid adoption of Morpho Blue. Within just six months, Morpho Blue surpassed $1.7 billion (approximately €1.56 billion) in deposits on Ethereum, and achieved $120 million in deposits on Base in under a month. These milestones underscore the growing traction and trust in Morpho's innovative approach to decentralized finance.

As Morpho continues to expand and innovate, the support from a robust network of investors and strategic partners will be instrumental in realizing its vision of a decentralized and inclusive financial ecosystem.