@Morpho Labs 🦋 has spent the past year transforming from a clean, efficient lending protocol into a full financial backbone one that now powers everything from retail apps and stablecoins to institutional finance and creator ecosystems.
What started as a technical innovation is now turning into a global financial network. The most visible example came when Coinbase integrated Morpho into its main app. This move allowed users to take crypto-backed loans for instance, borrowing USDC against their Bitcoin directly within the familiar Coinbase interface. The lending itself happens onchain, with interest rates and repayment adapting automatically to market conditions. Coinbase runs this system on Base, its low-cost blockchain, while Morpho provides the lending logic underneath.
By October 2025, reports said over a billion dollars in Bitcoin-backed loans had already been issued through Coinbase using Morpho. That kind of volume signals that the protocol isn’t just safe it’s trusted by one of the biggest names in crypto. When major companies build their core products on an open protocol, it’s proof that the infrastructure underneath has matured.
Big institutions have followed a similar path. Société Générale FORGE (SG-FORGE), the digital arm of the French banking giant, has started using Morpho to power lending in its euro- and dollar-backed stablecoins (EURCV and USDCV). This allows banks to offer crypto-based lending and borrowing while meeting European MiCA compliance standards. In this setup, Uniswap handles trading liquidity, while Morpho manages the credit and risk side showing how decentralized finance (DeFi) and traditional banking can finally work together.
For SG-FORGE, choosing Morpho wasn’t just about technology. It reflected confidence that DeFi can support serious, regulated financial activity and that open protocols can safely manage real-world assets under strict rules.
While these major integrations made headlines, Morpho didn’t slow down on development. On September 29, the team launched Vaults V2, a major upgrade that lets asset managers and curators define access rules, roles, and investment allocations directly onchain. In simpler terms, Vaults V2 turns what used to be basic DeFi vaults into programmable, automated funds that can evolve as markets and strategies change. It gives professional managers transparency and auditability without losing the speed and control that DeFi offers.
Developers also got new tools. The Morpho SDK, released in October, makes it easier and faster for apps, wallets, and platforms to plug into Morpho. It works alongside earlier features like Morpho Lite and Morpho Prime, which make onboarding and capital transfers smoother. Together, these updates mean that any app from a savings platform to a trading tool can integrate lending and borrowing in a few lines of code.
The team often describes this as the next step after stablecoins. If stablecoins made digital cash useful for spending, vaults and SDKs make onchain savings and lending useful for earning and investing.
Morpho’s growth numbers back up this vision. By mid-2025, it had over $9 billion in total deposits, with more than $2 billion deployed on Base. Coinbase loans alone accounted for over $1 billion in collateral, and about half a billion in active loans. The message isn’t about a single statistic it’s about the steady climb, driven by real-world use cases and institutional trust.
Governance has evolved too. The community streamlined everything around a single token, MORPHO, which is now listed on major exchanges and used for protocol decisions. Holders can vote on key parameters like treasury use, fee settings, and upgrades. The governance model is designed for transparency ensuring that decisions about economics and risk management stay visible and accountable.
October brought even more exposure. Binance listed MORPHO for spot trading, featured it in airdrops, and promoted creator-led educational campaigns. This opened the door for retail users who might first encounter Morpho through centralized exchanges before exploring its DeFi products directly. The listing also inspired fresh research and explainers across crypto media, helping more people understand how Morpho fits into the financial landscape.
Throughout all of this, Morpho has kept a strong focus on security and risk management. Every upgrade is backed by audits, verification, and post-incident transparency. When an app issue occurred in April, the team responded quickly, fixed it publicly, and improved their safety processes. Features like pre-liquidation and improved refinancing show that Morpho can keep user experience smooth without losing sight of safety a balance that’s key for both banks and individual users.
All together, 2025 looks like the year Morpho became part of the financial mainstream.
Retail users can now get instant loans on Coinbase.
Banks can issue and manage compliant stablecoin lending through Morpho.
Managers can use vaults to build programmable onchain funds.
Developers can integrate lending features easily through the SDK.
Traders can access the MORPHO token on major exchanges.
Each of these pieces fits into a bigger picture: DeFi becoming public financial infrastructure open, transparent, and usable by anyone from a retail saver to a global bank.
As Morpho moves forward, the likely focus will be on expanding vault strategies to real-world assets, deploying across more secure blockchains, and turning community creators into educators and advocates.
The butterfly logo that once symbolized DeFi efficiency now represents something much larger an open backbone for modern finance.