Decentralized finance (DeFi) lending protocol Morpho announced Friday it raised $175 million in a funding round led by Paradigm, Andreessen Horowitz’s crypto arm (a16z Crypto) and Ribbit Capital.

The funding round also attracted participation from Apollo Funds, Circle Ventures, VanEck, Ledger, Cathay Innovation and a broad group of strategic investors.

The new funding comes as institutional interest in tokenized finance and onchain credit continues to accelerate. Morpho stated that the shift reflects a broader transition from experimentation to real-world adoption, as financial institutions evaluate how onchain infrastructure fits into their long-term product roadmaps.

“As more financial activity moves onchain, the opportunity grows from…