Morpho raises $175M to build onchain credit infrastructure for banks and fintechs

Morpho raised $175M from Paradigm, a16z and Ribbit Capital to build credit infrastructure for banks and fintechs, signaling VC money is flowing to onchain lending rails over retail DeFi.

• Morpho raised $175M in what it calls the largest raise in DeFi history, led by Paradigm, a16z and Ribbit Capital.
• The protocol has $6.72B in total value locked and $3.47B in active loans, with Coinbase using it for $2.17B in corporate USDC loans.
• Morpho aims to become a credit infrastructure layer for banks, asset managers and fintechs, not just a retail DeFi lending platform.
• Late-stage crypto VC funding surged 1,020% year-over-year in Q1 2026, with capital concentrating on established infrastructure projects.

Coinporta summarises news for fast scanning. Full reporting belongs to the source.