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Morpho Unveils Fixed-Rate Protocol Morpho Midnight

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Morpho Unveils Fixed-Rate Protocol Morpho Midnight

Morpho is the second-largest lending protocol in DeFi, with $7.7B in TVL.

Morpho, DeFi’s second-largest lending protocol by value locked, has officially named its long-in-development fixed-rate product: Morpho Midnight.

Co-founder and CEO Paul Frambot announced the name on X today, April 14, emphasizing that Midnight is not a sequel to Morpho Blue. “It is a completely new paradigm for onchain lending, and should not be considered a ‘V2’ of Blue,” Frambot wrote.

The distinction is structural, according to Frambot’s X post. Morpho Blue offers pool-based, open-term variable-rate markets with externalized risk management. Midnight introduces intent-based, fixed-term, fixed-rate markets with externalized management of both risk as well as rate, a different mechanism for pricing and matching lenders and borrowers.

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The two protocols will coexist and complement each other within the broader Morpho network, per the X post. Frambot first flagged the naming overhaul of Morpho’s fixed rate market in early March, when he dropped versioning terminology (Markets V1/V2) in favor of distinct brand identities for each product.
Frambot added in today’s announcement that more details on Midnight are expected as security audits finalize.

Morpho currently holds approximately $7.7 billion in total value locked, per data from DefiLlama, making it the second-largest lending protocol in DeFi, following Aave with $26.3 billion in TVL.

Last June, The Defiant reported on Morpho’s V2 launch, which introduced fixed-rate and fixed-term loans, with the aim to bring DeFi lending closer to traditional finance structures, which Midnight now builds on.

Last month, the Ethereum Foundation made its second deployment into Morpho Vaults, bringing its total commitment to nearly $19 million and citing the protocol’s immutable, open-source architecture as a model for cypherpunk-aligned DeFi infrastructure.

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This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Crypto World

Fireblocks Opens Access to Lending Markets for 2,400 institutions

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Fireblocks Opens Access to Lending Markets for 2,400 institutions

Enterprise digital asset infrastructure platform Fireblocks said Wednesday it launched Earn, a feature that lets institutional clients route stablecoin balances into onchain lending strategies through Aave and Morpho-powered products.

The product launches with a Sentora-curated vault on Morpho and direct access to Aave’s stablecoin lending markets, according to Fireblocks. The company said Earn is available now in Early Access for Fireblocks customers.

Fireblocks said the feature is aimed at clients sitting on large idle stablecoin balances between settlement windows and deployment cycles. The company said it processed $6 trillion in stablecoin transfer volume in 2025 across more than 2,400 institutional clients, up 300% from a year earlier.

Fireblocks is the latest platform launching an institutional gateway product for decentralized lending, seeking to make idle stablecoin holdings more productive for institutions. Competing solutions for institutional stablecoin lending include Aave Horizon, Coinbase Prime, Anchorage Digital, Nexo Institutional and Spark Institutional Lending.

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Fireblocks did not disclose a target yield. The company said any returns would be generated by the underlying protocols and would be variable, not guaranteed, and could be zero.

Top decentralized lending protocols. Source: DeFiLlama

Aave is the largest decentralized lending protocol with $25.9 billion in total value locked (TVL), followed by Morpho with $7.67 billion in TVL, according to DeFiLlama data.

Fireblocks targets idle stablecoin balances

Fireblocks said most institutional capital sits idle between deployment cycles and settlement windows, which inspired the new Earn product, according to Michael Shaulov, CEO and co-founder of Fireblocks.

“For the first time, institutions can put those balances to work through onchain lending strategies curated by established institutional names, inside the same platform, under the same controls they already run,” he said.

Related: Deutsche Börse invests $200 million in Kraken parent Payward

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Fireblocks has been expanding its institutional services beyond just lending.

In October 2025, Fireblocks Trust Company teamed up with Galaxy, Bakkt, and others to launch a crypto custody framework operating under the New York Department of Financial Services (NYDFS) to meet soaring institutional demand, Cointelegraph reported.

On Jan. 7, 2026, Fireblocks acquired crypto accounting platform TRES for $130 million, tapping the company for its tax compliance infrastructure to support institutions.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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