Pharos and Morpho Deploy $9B Lending Engine for RWA Finance on Layer 1

Pharos Network has partnered with Morpho to deploy native lending infrastructure on its Layer 1 blockchain, targeting real-world assets (RWA) such as mortgages, trade receivables, and private debt. The integration embeds Morpho’s lending engine directly into the Pharos mainnet, enabling structured lending products with risk-isolated mechanisms. This marks a key step in developing an institutional-grade credit ecosystem on-chain, combining transparency and capital efficiency [1].

The collaboration aims to provide both DeFi-native and institutional participants with modular tools for credit risk modeling and lending. The first deployments will focus on institutional vault designs, leveraging Pharos’s capabilities in custody, liquidity routing, and credit modeling. These vaults will serve as the foundation for future expansion into retail markets [2].

Morpho’s $9 billion in total deposits positions it as a leading infrastructure provider in the on-chain lending space. By deploying natively on Pharos, Morpho extends its reach into the RWA sector, following earlier successes in private credit and tokenized stocks. The integration also enhances composability, allowing other protocols to build on top of the established infrastructure and drive innovation in structured lending and yield generation [1].

Wish Wu, CTO and co-founder of Pharos, emphasized that the partnership strengthens trust and transparency in the RWAfi ecosystem. The integration supports complex lending strategies while maintaining the modularity and openness typical of DeFi. Kirk Hutchison of Morpho added that the initiative aligns with the firm’s vision for scalable and transparent credit systems [2].

Pharos’s team brings deep technical and financial expertise, with experience in blockchain infrastructure, formal verification, and zero-knowledge systems. The founding team previously led key projects at AntChain, Microsoft, and Stanford. Their collaboration with Morpho aims to bridge traditional financial systems with decentralized infrastructure, facilitating the growth of RWA finance [1].

The partnership is expected to enhance yield opportunities for both institutional and retail investors by offering transparent risk pricing and structured lending products. The native integration supports experimentation with RWA yield structures, onboarding strategies, and capital-matching algorithms, further solidifying Pharos’s role in the evolving RWA ecosystem [2].

Source:

[1] Why Morpho's $9B Network Is Powering Lending on Pharos RWA Blockchain (https://hackernoon.com/why-morphos-$9b-network-is-powering-lending-on-pharos-rwa-blockchain)

[2] Morpho's $9B+ Lending Engine Goes Native On Pharos Layer 1 For RWA Finance (https://blockchainreporter.net/morphos-9-b-lending-engine-goes-native-on-pharos-layer-1-for-rwa-finance/)