Morpho's total deposits crossed $14B in August, a new all-time high.

That is roughly 25% of the crypto-backed lending market. Here is a breakdown of the ±$14B total deposits on Morpho, with a large proportion being stablecoins, as well as bluechip digital assets such as BTC and ETH.

However, compared with Morpho's ambition to become open credit network for the world, and to address the $200T global market, $14B is still a very small amount.

To visualize the ambition and where we currently are at, this animation from Merlin Egalite is quite telling.

The missing piece to move us from $14B to beyond crypto-backed lending is Morpho Midnight, the fixed rate, fixed term protocol launched in July.

Morpho Midnight is in its gradual rollout phase since July 2026, with new features coming every week. If you're looking for a primer on Morpho Midnight, DeFiSaver put out a very clear whiteboard explanatory video:

Historically, fixed rate protocols face a few challenges: blockchain technology was immature (read: high gas fees), last generation of fixed rate protocols fragment liquidity (read: once locked into a loan, users could not exit), there is a lack of network of liquidity to support the new fixed rate protocol (read: users can't find the optimal rates)

Here are the new Morpho Midnight features that bring a complete lending and borrowing experience for users:

• Early Exit: exit a position by offering limit orders on the secondary market, making getting in and out of a fixed-term position much easier

• Lend Callbacks: while a lend order for a higher rate is open, the capital can be earning a balance line variable yield on Morpho Blue

• Here is an illustration of how Lend Callback works

Another innovation with Morpho Midnight is that for the first time ever, users are not just price-takers, but also price-makers: they can name their desired rate on the orderbook and wait for their orders to be filled. Since this is a new paradigm for onchain credit, we designed an open source Quoter Bot that produces reference rates on any live Morpho Midnight Markets, on both the lender and borrower side.

Currently, the Morpho Association implementation is live, with the goal of Market Makers launching their own Quoting Bots and retire the Morpho Association implementations.

Morpho's total deposits on Base have passed $5B (sitting at $5.7B at the time of writing). The story behind that number shows how an open credit network helps a blockchain built for global finance grow, and how it gives asset issuers real distribution and utility.

The growth went through 3 distinct phases: an early conviction that Base is going to be a key player in onchain finance, the DeFi Mullet: Coinbase in the front, Morpho on Base in the back, and finally, the open financial infrastructure for the world.

And the $5B milestone is just the beginning, with Morpho Midnight launching on Base, Tokenized Stocks going live on Base - credit use cases built on Morpho and Base will only increase.

In July, Robinhood Earn crossed $250M in its first month. In August, it passed $400M in total deposits. This is the fastest growing Earn integrations of Morpho by a mainstream distributor. The investment app that introduced a generation of Americans to investing keeps introducing them to onchain yield, and they keep showing up.

Onchain credit has so far meant one thing: crypto-backed loans. Paul's new article lays out what it takes to move beyond them, starting with tokenized stocks.

The challenge: stocks are regulated instruments, so who can hold, lend, borrow, or liquidate them varies by asset and jurisdiction (read: bespoke compliance for every market), and borrowers want to pledge whole portfolios (read: near-infinite collateral combinations). Pool-based lending can only serve this by commingling risks or fragmenting liquidity.

The opportunity: two multi-trillion dollar markets that are still offchain are tokenized stock-backed lending (unlock liquidity without selling the portfolio) and tokenized stock lending (lend stocks out against collateral, for a fee).

The solution: Morpho Midnight was designed for exactly these use cases. Multi-collateral isolated markets let a whole portfolio back a single borrow position, with each portfolio as its own isolated market. Programmable compliance makes access controls an optional market parameter, with no wrappers or separate protocol instances. And because markets are offer-based rather than pool-based, capital can quote across many markets at once: a new market needs only one lender and one borrower who agree on terms, so there can be a price for every portfolio, without fragmenting liquidity.

• Morpho is now the biggest DeFi protocol for euro-denominated deposits
• Coinbase's tokenized stocks are now available as collateral on Morpho
• Deel is expanding its Morpho-powered earn offering to new regions
• Touchstone joins Morpho as a curator, bringing gold-backed credit expertise from institutional credit and tokenized gold treasury management to the Morpho ecosystem
• MORPHO is now listed on the Robinhood App
• Onchain credit is coming to Arc mainnet, powered by Morpho
• weETH deposits on Morpho continue to grow