Morpho’s Active Loans Grow 40% in Three Months as Midnight Deposits Top $200 Million
Key Facts
Morpho said active loans on its protocol grew 40% in the three months before its October 2026 update, and that one in every five dollars borrowed on-chain was borrowed through it. The figure reflects the expansion of lending activity across the protocol as a whole and is not limited to real-world asset loans. In the final week of October, total deposits in Morpho’s Midnight markets passed the $100 million mark, then topped $200 million. The company said adoption of Midnight’s fixed-term, fixed-rate markets is accelerating. It linked this to rising demand for greater predictability in on-chain credit.
The deposit figures offer an indication of growing use of the new credit market, which differs from variable-rate borrowing markets by offering fixed terms and rates. Morpho launched Midnight on July 21, 2026, as a non-custodial protocol for fixed-rate, fixed-term credit. The application launched on the Base network with one pair, cbBTC/USDC, and a limited set of maturities. The company said at the time that a gradual launch would allow fixed- and variable-rate dynamics to develop before expansion to other markets and networks. The subsequent increase in deposits shows the service moving beyond its initial launch phase toward broader use, according to figures released by Morpho.
Morpho plans to launch the Midnight Adapter in the fourth quarter of 2026, allowing new and existing vaults to allocate deposits to Midnight’s fixed-rate markets. The company said the adapter would give those markets access to nearly $5 billion in liquidity already held in Morpho vaults. This means Midnight’s growth could draw on its connection to the protocol’s vault base, alongside the deposits it has attracted so far. The announced launch date remains a future plan for the fourth quarter. Morpho says financing could also include accounts receivable financing markets on Midnight, allowing companies to borrow against payments due to them that they have not yet received. It added that the first use cases built on this model would be announced soon.
In tokenized assets, Morpho said tokenized Coinbase shares are available through Base, while tokenized Robinhood shares are available through Robinhood Chain. On Robinhood Chain, the company said users can use stock tokens as collateral to borrow stablecoins. Morpho also expects Midnight to enable borrowing against a portfolio of tokenized stocks or a mix of stocks and cryptocurrencies. These routes illustrate different uses of tokenized collateral in borrowing markets, alongside Midnight’s focus on fixed interest rates and terms. According to Coinbase, borrowing through the Morpho protocol on Base allows eligible customers to borrow USDC against their crypto assets, with PAX Gold among the eligible collateral.
Morpho’s real-world asset activity dates back earlier; the company said deposits in these assets rose from near zero at the start of 2025 to $400 million by the end of the third quarter of that year. This trajectory provides a backdrop to the expansion of tokenized credit applications, but does not change the scope of the growth figure reported in the October update, which covers active loans across the protocol as a whole. In fixed-term offer markets, Morpho said lenders and borrowers can specify the asset, interest rate and maturity date, and capital is committed only when an offer is matched. It also noted, however, that an offer may wait, be partially executed or remain unfilled, and that liquidity needed for an early exit may not always be available. MORPHO closed at $2.112 on November 6, 2026, according to EL7 data.