TL;DR: 2025 is the year zero of onchain finance becoming the backbone of finance. Morpho’s thesis of becoming the financial infrastructure of enterprises has just taken shape. Here’s a recap of the two major themes in 2025, and what to expect in 2026.

At the beginning of 2025, Coinbase launched its crypto-backed loans, powered by Morpho. The product allows millions of Coinbase users to collateralize BTC (and, later, ETH) to take out loans in USDC. Users have been using these loans to pay down mortgages, refinance car loans, or cover other life expenses, giving their crypto holdings a clear financing utility without leaving their favorite financial application.

In the meantime, exchanges like Crypto.com and Gemini, and self-custodial solutions such as Ledger, Safe and Trust Wallet, have integrated Morpho for their onchain earn products, giving millions of users one-click access to onchain yield from interfaces they already trust.

Today, millions of people, and over time likely hundreds of millions, are able to access noncustodial onchain yield via their trusted interfaces, without giving up custody of their assets to generate a return or finance a loan.

In 2026, we will see many more familiar names to average financial app users offering Morpho-powered earn or borrow products. For users, they will not even need to know that the yield or the loan is originated onchain.

That is mass adoption of onchain finance: DeFi utility without users ever needing to realize it is DeFi under the hood.

2025 is the year zero of onchain finance going mainstream.

Stablecoins brought checking accounts onchain and became the first blockchain product to find clear institutional product-market fit. With regulatory clarity such as the GENIUS Act accelerating issuance, and public forecasts from U.S. officials that dollar stablecoins alone could exceed a $2 trillion market cap within a few years, the market is now on a path toward multi-trillion-dollar scale over the coming decade.

With trillions of stablecoins coming onchain, and the GENIUS Act barring stablecoin issuers from distributing yield directly to stablecoin holders, those assets must move into neutral, transparent infrastructure if they want to become productive.

The answer is vaults.

A vault is a programmable, noncustodial “model portfolio” that users can opt into to allocate deposits across different opportunities, all within a single atomic environment: the blockchain.

Stablecoins will flow into vaults to become productive assets, primarily as liquidity to be lent to borrowers. Lenders will receive interest payments from the vaults and generate yield.

Trillions in stablecoins means billions in annualized interest generated.

There are currently just shy of $3B in stablecoins on Morpho. We expect this number to grow significantly as more issuance moves onchain and more institutions look for regulated yield infrastructure.

• Total Deposits grew from $5B at the beginning of the year to $13B at the end of Q3 2025, a 260% increase.
• Active Loans grew from $1.9B to $4.5B (a 236% increase), showing a significant growth of capital utilization on Morpho.
• Annualized interest of $227M was paid to lenders, turning idle holdings into productive assets (a 400% increase compared to 2024).
• Annualized curator fees went from just below $2M annualized to $13M (a 600% increase), marking the growth of asset curation as a maturing industry.
• Lastly, total users went from 67,000 to 1,400,000 thanks to DeFi mullet integrations like the Coinbase crypto-backed loans and powering lending and borrowing on World.

2025 was marked by enterprise adoption of Morpho. Here are some key highlights of the year:

• Coinbase crypto-backed loans and DeFi lending are powered by Morpho. To date, $960M in active loans, $1.7B in total collateral across BTC and ETH, and $450M in USDC are earning yield via Coinbase on Morpho.

• Tier-1 exchanges like Crypto.com, Gemini, and Bitpanda all built their own DeFi Mullet integrations, as well as crypto-native fintechs like Ledger, Trust Wallet, Safe, and World. Morpho has evolved from a lending protocol to a universal lending network, connecting enterprises and their users across the globe.

• Societe Generale became the first regulated banks to integrate DeFi to extend its loan book, including using Morpho to create lending markets for its MiCA-compliant USDCV and EURCV stablecoins. This integration shows how a fully regulated bank can use noncustodial, programmable onchain liquidity to complement its traditional lending business model.
• Tokenized RWAs are finding product-market fit on Morpho, including assets from trillion-dollar asset managers like Fasanara and Apollo. Total deposits of RWA on Morpho have grown from nearly zero at the beginning of 2025 to $400M at the end of Q3 2025, and are increasingly becoming core collateral in institutional strategies.

• Vaults will be the default infrastructure for onchain asset management

In 2025, the industry cracked the code on moving value onchain via stablecoins. In 2026, the logical next step is putting tokenized value to work onchain. For stablecoins, vaults are atomic environments where stablecoins can be put to work, ranging from the most vanilla risk profiles to some of the most long-tail risk profiles. Curators on Morpho have created a variety of asset curation strategies, which are reflected in different vaults.

As more native issuance of assets such as securities and bonds comes onchain, they will all need a native onchain finance environment to become productive, and Morpho Vaults are increasingly becoming that place.

• Morpho Markets V2: bringing familiar institutional-grade lending and borrowing mechanisms to enterprises

Morpho Markets V2 will be paradigm-shifting. DeFi lending has historically been variable-duration and variable-rate structures that are native to DeFi, but that often introduce volatility and uncertainty for enterprises. Markets V2 solves this by allowing issuance of fixed-duration and fixed-term loans at market rates.As onchain issuance of assets becomes a reality, Markets V2 will provide the tools for institutions to create lending products that were previously impractical to build onchain. It will open up design space to price many types of collateral, and to explore onchain credit more broadly.

If you are interested in what Morpho Markets V2 unlocks, check out this piece.

If you’ve made it this far, consider yourself thoroughly Morpho-pilled.

See you in 2026.