Morpho, the on-chain lending network claiming to have more than $10 billion worth of deposits, says it has delivered on key milestones from Vaults V2 to integrations with one of the world’s regulated banks and fintechs.
Morpho has explained that businesses are able to connect to its open infrastructure in order to enable any lending or borrowing use case at scale, including embedded crypto-backed loans as well as various customized yield solutions.
According to the update from Morpho, this marks the start of Morpho’s evolution into the backend of all finance. As clarified in the update from the open lending platform, Morpho isn’t a banking platform, but rather it provides an infrastructure for banks, fintechs, and exchanges to build upon.
A few updates:
- New standard for asset curation: Vaults V2 is live
- Societe Generale builds on Morpho via SG Forge
- DeFi Mullet flywheel: Coinbase $1B+ loans & 200M+ lending deposits
In January of this year, digital assets firm Coinbase launched Bitcoin-backed USDC loans, powered by Morpho. And in only 9 months, Coinbase users have now reportedly borrowed more than $1 billion, locking more than $1.3 billion in collateralized BTC .
This is a steady pace of adoption for the new onchain financial tool, which gives users the ability to borrow USDC for any of life’s expenses, big or small.
Coinbase intends to significantly increase loan limits on October 13, too: from $1M to $5M. This 5x jump is expected to “further bolster volume for crypto-backed loans and solidify onchain financial services as a more viable (and more efficient) tool than traditional lending services.”
For now, cryptocurrency-backed loans are in their very early stages of development and adoption. While these solutions seem promising, there’s probably a lot more that needs to be done to make the UX more frictionless while also allowing time for regulators to create an appropriate regulatory framework for this new form of lending to ensure consumer protection.