The Morpho Effect: May 2026
Two years ago, we called Morpho the universal lending network. That label no longer captures where Morpho is, nor our mission.
We’re building the open credit network for the world.
Lending only ever described half of it. Every position on Morpho has two sides, a lender and a borrower, meeting on the same network. Credit is the word that holds both, and it is the language financial institutions already use.
It also reflects our ambition: bringing all $200T of the world’s credit onchain.
The release of Morpho Midnight whitepaper and codebase
The first step of this evolution is Morpho Midnight.
Morpho Midnight is a fixed-rate, fixed-term lending protocol for collateralized credit, following principles of isolated, immutable and permissionless markets pioneered by Morpho Blue. Fixed rate and fixed term is how most of finance already runs, and Midnight brings a credit framework that’s familiar to traditional institutions.
Previous attempts at fixed-rate lending never took off because of the capital commitment required up front, which kept liquidity thin and split it across maturities.
Morpho Midnight addresses these constraints with offered capital. A lender keeps their funds productive on Morpho Blue, earning variable rates, until their fixed-rate offer is taken. Positions sharing a maturity are fungible, allowing early exit and late entry, which stops liquidity from fragmenting. And because liquidity is expressed through offers and only sourced when an offer is taken, a market can be bootstrapped before steady flow arrives.
For more details, read the Morpho Midnight Whitepaper and review the codebase.
For how Morpho’s protocols evolved to this point, Paul’s short history is worth the read.
Doubling down on connecting APAC to the Morpho network
Morpho’s ambition is global, and Asia is a significant part of that roadmap.
Paul and the local team spent the past three weeks across the region, deepening relationships and connecting more countries to the credit network Morpho is building. After 55+ meetings with exchanges, institutions, and capital allocators, his takeaways are here.
Morpho is also strengthening its presence in APAC, starting with a few key job openings.
May at a glance
A busy month of integrations, expansions, and new partners that keeps cementing Morpho as the onchain infrastructure for consumer and institutional credit products.
- Tempo named Morpho as its onchain credit infrastructure.
- Kraken’s new Bitcoin Vault is powered by Morpho.
- Trezor’s new Stablecoin Earn product is powered by Morpho.
- Wintermute’s vault curation arm, Armitage, came out of stealth on Morpho.
- Figure, the NASDAQ-listed lender, began its EVM expansion by deploying PRIME, backed by home equity loans, as collateral on Morpho.
- Credit products on Circle Arc will be powered by Morpho.
- Coinbase expanded its crypto-backed lending to SOL, powered by Morpho.
- Kaia is building its superchain for onchain finance in Asia on top of Morpho.
- S&P Global is joining Morpho to co-host Vault Summit NYC 2026.
- Stable’s flagship yield product, StableEarn, is powered by Morpho.
- Base MCP now provides access to Morpho Agents (beta).
- Delphi coins Morpho as the infrastructure for onchain banking.