Morpho raises $175M token sale led by Paradigm, Ribbit Capital and a16z crypto at up to $2B valuation
What's the deal? Morpho, a decentralised finance protocol that offers blockchain-based lending and borrowing, has raised $175 million in a token sale led by ParadigmDealroom has a profile for this one. Try Dealroom →, Ribbit Capital, and a16z cryptoDealroom has a profile for this one. Try Dealroom →. Other investors included Apollo FundsDealroom has a profile for this one. Try Dealroom →, CircleDealroom has a profile for this one. Try Dealroom →'s venture unit, and VanEckDealroom has a profile for this one. Try Dealroom →. The investment — made in Morpho's cryptocurrency token, with investors buying at the token's average monthly price — valued the protocol at up to $2 billion.
Morpho lets users create their own blockchain-based lending markets with custom risk parameters. Founded in Paris by 25-year-old Paul Frambot and three co-founders, it now holds $6.6 billion in assets on its protocol and counts Coinbase, Kraken, Anchorage Digital, and Galaxy Digital among its users.
Why now? Crypto and traditional finance are converging fast. Since early 2024, the New York Stock ExchangeDealroom has a profile for this one. Try Dealroom →'s parent company invested in crypto exchange OKX, BlackRock embraced digital assets ETFs, and banks began exploring putting customer deposits on blockchains.
"I think the folks who live in FiDi and Wall Street maybe have to have casual Fridays," said Guy Wuollet, general partner at a16z crypto. "And I think people in DeFi are, let's say, dressing up ever so slightly."
Frambot is now targeting traditional institutions that he believes will wade into DeFi for its higher yields.
What could go wrong? Decentralised lending carries real security risks. The dominant player AaveDealroom has a profile for this one. Try Dealroom →, which holds nearly $12.5 billion in assets, had significant exposure to a $290 million hack of other crypto protocols in April 2026. Morpho itself had minor exposure to the same incident.
Morpho also faces stiff competition. Aave remains the market leader with nearly double Morpho's assets under management, though the gap is narrowing.
The signal: The investor mix here tells the story: Paradigm and a16z crypto bring deep DeFi conviction, while Ribbit Capital, Apollo Funds, and VanEck are firmly rooted in traditional finance. That crossover syndicate — backing a Paris-founded, breakout-stage protocol now holding $6.6 billion in assets — suggests institutional capital is no longer just dabbling in DeFi but actively underwriting its infrastructure layer.
Read more: Fortune
