In the past two months, Morpho's keywords have shifted from just 'decentralized lending' to 'turning financial infrastructure into a backend for everyone.' The official monthly report has set a clear tone: institutions are increasingly going on-chain, the scale of Morpho deposits on Base has reached the top of L2, Crypto.com announced that it will integrate with a 'DeFi Mullet' (traditional experience in the front end, DeFi infrastructure in the back end), Hyperliquid has become the third-largest link into the Morpho application, and even held the first Vault Summit at Devconnect, with the ecosystem accelerating towards a form of 'unified backend, distributed to various ends.'
What best proves 'backendification' is the real-world battle of banks and giants. The compliance digital asset department SG-FORGE under Société Générale has chosen Morpho as the lending layer for its MiCA compliant stablecoins EURCV and USDCV, in collaboration with MEV Capital’s Vault for risk curation, using Flowdesk for market making and Uniswap for basic liquidity. This means that the traditional bank's deposit and loan ledger is beginning to extend onto the chain, and the combination of regulation and openness is being implemented rather than just staying at the discussion level. For ordinary users, this marks the beginning of being on the same transparent track as bank-level products.
The retail experience has also been completely transformed. Coinbase has launched USDC lending powered by Morpho, forming a closed loop with the previously Morpho-supported 'crypto mortgage': users can earn yields by depositing USDC with a trusted front end with one click, while liquidity is automatically matched in the backend through Morpho's Vaults and borrowing demands, with Steakhouse handling asset allocation, maintaining non-custodial and auditable processes. This 'front store and back office' model allows interest rates and liquidity to discover prices in an open network while handing complexity over to the backend.
Payment networks are also turning 'balance as yield' into the default option. The collaboration between the Stable team and Morpho directly addresses the pain point: the large idle funds lying in stablecoin payment networks will enter Morpho's yield routing without sacrificing usability; for users in regions like Asia, Africa, and Latin America, where stablecoins are used for daily settlements, the funds in their wallets can not only be paid anytime but can also automatically generate sustainable returns when idle; for institutional finance, payment reserves will no longer be 'asleep.' This embeds the expectation that 'money should work for itself' into the product paradigm.
From the perspective of developers and the ecosystem, the reason this 'financial backend' can be rolled out is due to the maturity of SDKs and components. Morpho's newly released TypeScript SDK packages market, position, and Vault data and calculations into reusable modules, providing simulators and Bundlers, completing multiple steps such as authorization, deposit, and borrowing in a single transaction, reducing the integration cycle from 'weeks' to 'days,' which directly lowers the threshold for wallets, trading platforms, and custodians to integrate Morpho into their product lines. It is for this reason that we are witnessing a new round of integration and distribution channel explosions.
From the user's perspective, my real experience is that 'the complexity has clearly been absorbed by the backend.' I migrated my old positions using the refinancing feature on mobile without feeling it, and the front end provided estimates of new health and borrowing capacity, completing the process with just one signature; the advanced filtering on the Explore page quickly helped me locate asset and term combinations suitable for my risk tolerance, avoiding blind searches in a pile of markets. This type of interaction, which 'gives users the choice and hands over the calculations to the system,' is becoming the default paradigm for the Morpho application.
Putting these dynamics together, Morpho's advantages become clearer: first, the integration power of 'unchanged distribution and unified backend'—banks and exchanges can retain familiar front-end styles, with yields and credits transparently settled on-chain; second, 'coordinated yield and liquidity in the same domain'—the Vault integrates different strategies, compliance domains, and liquidity from different chains into an atomized environment, allowing for immediate use as well as detailed risk control for institutions; third, 'low friction in development and integration'—SDKs, Bundlers, and governance proposals lower the participation threshold for the ecosystem enough to drive more front-ends to embed yields and borrowing capacity into existing product lines. Looking ahead, I will continue to focus on the launch rhythm of Crypto.com, how large vaults on the Safe side will integrate Morpho's yields in bulk, and the risk control and distribution frameworks disclosed by various curators after the Vault Summit, all of which will determine the growth curve in 2026.
I am Nian Cheng, and this round is not an 'upgrade of a single protocol,' but rather 'packaging returns, credit, and compliance into'
The industrialization shift of the 'public backend.' The frontend continues to flourish, while the backend gradually standardizes, which is the long-term paradigm I am optimistic about. Feel free to share the frontend entry and Vault combinations you are using in the comments section, and don’t forget to 'wake up' the stablecoins in your hands to allow them to work in a transparent backend.
