Ethereum DeFi Protocol That Just Raised $175 Million From a16z And Paradigm Has A Bold Message For Wall Street

Morpho, an Ethereum-based DeFi lending protocol, raised $175 million in a round led by Paradigm, Ribbit Capital, and a16z crypto, valuing it at up to $2 billion. The funding highlights growing institutional interest in onchain lending and DeFi infrastructure, especially as Morpho targets traditional financial institutions and aims for a future public debut. The article says Morpho already has major users such as Coinbase, Kraken, Anchorage Digital, and Galaxy Digital, and its $6.6 billion in TVL makes it the second-largest decentralized lending protocol behind Aave. The raise suggests DeFi is moving further into mainstream finance and could support broader adoption of Ethereum-linked infrastructure.