Morpho’s Acceleration: The Year Onchain Lending Became Institutional
Morpho is stepping into 2025 with a level of momentum that feels like a turning point for the entire onchain credit landscape. In just one year, Bitcoin backed loans soared to 1.5 billion dollars in collateral, 1.2 billion dollars in origination, and more than 800 million dollars sitting in active loans. At the same time, over 350 million USDC is being deployed through Morpho powered lending, earning lenders yields above eight percent. These numbers show something simple but powerful. Onchain lending is no longer an experiment. It is becoming a fully functioning financial system.
The introduction of ETH backed loans on Coinbase adds even more energy to the liquidity cycle. Under the surface, Morpho is quietly connecting Coinbase users to lending demand from some of the biggest fintechs and DeFi platforms in the world including Ledger, Safe, Trust Wallet, Spark, Moonwell, Seamless and others. This creates a continuous liquidity flywheel where deposits and borrowing activity reinforce each other.
The most striking shift is institutional adoption. A year ago, vaults were used mainly by DeFi natives. Today, more than ninety percent of Morpho’s pipeline comes from institutions and fintechs integrating vaults directly into their products. Vaults are becoming the default infrastructure for allocating capital onchain and Morpho is leading this transformation.
