BlockBeats News, June 10th, a16z Crypto published an article explaining why they co-led a $175 million funding round for the decentralized lending protocol Morpho in conjunction with Paradigm and Ribbit. a16z considers on-chain lending as the "next frontier of credit" and a key technological node towards human flourishing, believing that a blockchain-based open credit network can reduce infrastructure costs, create a more competitive credit market, and provide broader access to capital and revenue streams.

a16z stated that when they first encountered the Morpho team in 2022, founder Paul Frambot was still in university but had already assembled a team comprising some of France's top blockchain talent. The team's innovative on-chain lending optimizer, by coordinating peer-to-peer loans on top of underlying AMM protocols, achieved a Pareto improvement in interest rates, symbolizing a transformation of the global financial system.

In 2024, Morpho introduced the Morpho Blue protocol, focusing on floating-rate, variable-term crypto asset overcollateralized loans. Today, Morpho is moving towards a greater vision — to become an open credit network for the internet. The next product, Morpho Midnight, will support fixed-rate, term-based on-chain loans collateralized by traditional assets and equipped with customizable KYC tools. More importantly, users can launch their own lending markets based on Morpho's infrastructure while sharing the network's liquidity and network effects. a16z believes that we are currently in a crucial window of disrupting the traditional credit system and building a more open and efficient credit network.