A16z, Paradigm lead $175 million bet to move global credit markets onchain

Blockchain-based lending protocol Morpho said it raised $175 million in a funding round co-led by Paradigm, a16z crypto and Ribbit Capital, as investors bet that credit markets will increasingly move onchain.
The round also included Apollo Funds, Circle Ventures, VanEck and Ledger Cathay, according to a post on the Morpho blog.
Morpho operates an open credit network that allows institutions and fintech firms to build lending products on blockchain rails. The protocol has more than $11 billion in deposits and is used by institutional clients including Bitwise, Galaxy and Anchorage Digital, as well as crypto exchanges Coinbase, Kraken and Binance.
The raise highlights the interest in blockchain-based financial infrastructure from banks, asset managers and other traditional financial firms exploring tokenized assets and onchain settlement systems.
Unlike many crypto projects that seek to replace traditional finance, Morpho is positioning itself as an infrastructure provider working with existing institutions. The company said its network can help unify fragmented lending markets and support programmable credit products at scale.
Morpho said it will use the funds to develop its institutional lending infrastructure to build programmable credit products.