Morpho secures $50M funding led by Ribbit Capital for onchain lending

Morpho Labs has successfully raised $50 million in a recent funding round spearheaded by Ribbit Capital. This significant investment round saw contributions from over 40 investors, including prominent names such as a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, and Kraken Ventures. Ribbit Capital, known for its investments in companies like Revolut, NuBank, Coinbase, Robinhood, Mercado Libre, Figure, and Uniswap, played a pivotal role in this financial boost.

This recent funding marks a substantial milestone for Morpho Labs, which had previously accumulated $23.6 million across various funding rounds. Notably, an $18 million Series B funding round was led by a16z and Variant in 2022. The newly acquired funds are strategically earmarked to support the development and expansion of Morpho Blue, a permissionless lending protocol that empowers entities to create and manage their markets without requiring approval from any central authority.

Morpho Blue stands out with its unique offering of customizable vaults, tailored to meet specific risk management parameters. Since its launch nearly six months ago, the protocol has garnered impressive traction, with over $1.5 billion in deposits, as reported by Dune Analytics.

Launched in 2022, Morpho Blue aimed to optimize interest rates for users through the Morpho Optimizer, an innovative layer built on top of Aave and Compound. Over time, Morpho has evolved from a single application into a suite of purpose-built protocols operating on a unified base layer, addressing fragmentation within the Ethereum ecosystem.

DefiLlama data reveals that the protocol has facilitated borrowing of over $1.07 billion as of August 1, generating more than $27.3 million in fees. Currently, it supports nearly 160 pools with an average yield of 4.77%.

Paul Frambot, CEO and co-founder of Morpho, remarked, “We aim to build and support infrastructure that underpins a truly global, internet-native financial system, one that is trustless and opinion-free.”

The surge in DeFi protocols’ activity in 2024 is largely attributed to the resurgence of liquidity in crypto markets following the launch of Bitcoin exchange-traded funds in the United States. The total value locked onchain across various protocols stands at $96.1 billion at the time of writing.

As the decentralized finance landscape continues to evolve, Morpho Labs’ recent funding success signifies a robust vote of confidence from the investment community. The company’s commitment to fostering a trustless and decentralized financial ecosystem aligns with the broader trends in the crypto and blockchain industries.

In conclusion, Morpho Labs’ impressive $50 million funding round, led by Ribbit Capital and supported by a diverse group of investors, underscores the growing interest and confidence in decentralized finance solutions. With the launch of Morpho Blue and its innovative approach to onchain lending, Morpho Labs is well-positioned to play a significant role in shaping the future of the global financial system.