Morpho secures $175M funding, valuation reaches $2B

The decentralized finance protocol Morpho has raised $175 million in a strategic funding round, achieving a valuation of up to $2 billion. The round, announced on Tuesday, June 9, 2026, was co-led by major venture capital firms Paradigm, a16z crypto, and Ribbit Capital.

This investment, described as one of the largest in DeFi history, marks Morpho's fourth institutional funding round since its founding in 2021. The financing was structured as a token purchase, with investors acquiring the protocol's MORPHO token at its average monthly price, a mechanism that resulted in varying costs for participants based on their entry timing. Following the announcement, the price of the MORPHO token increased by more than 10%.

The Morpho Association, the entity behind the protocol, stated the capital will be used to scale its blockchain-based credit infrastructure, deepen technical and commercial integrations with partners, and expand its suite of credit products. The company emphasized the raise is a long-term strategic move focused on building infrastructure rather than generating short-term market momentum.

Morpho operates as an on-chain lending and borrowing platform that allows users to...