Pharos and Morpho Launch Native On-Chain RWA Lending Infrastructure

Pharos Network and Morpho have announced a strategic collaboration to bring native on-chain lending infrastructure for real-world assets (RWAs) directly into the Pharos mainnet. This initiative represents a foundational step in advancing institutional-grade lending protocols within the blockchain-based RWA ecosystem. Morpho, a leading lending network with over $9 billion in total deposits, will deploy its modular and risk-isolated lending infrastructure on Pharos, enabling flexible credit markets for asset originators and liquidity providers [1].

The collaboration aims to create a transparent and capital-efficient lending framework that supports both DeFi-native participants and institutional investors. Morpho’s lending engine is designed to operate with distinct vaults for different asset classes, such as tokenized mortgages or trade receivables, ensuring that risks remain isolated and do not propagate across the system. This structure is expected to enhance confidence and precision in structured lending, particularly for institutional participants seeking to engage with real-world collateral [2].

Wish Wu, CTO and Co-Founder of Pharos, highlighted that the integration of Morpho’s infrastructure is central to building a transparent and scalable on-chain credit ecosystem. The approach preserves the modularity and openness of DeFi while supporting complex, institution-grade lending strategies. Kirk Hutchison from Morpho noted that the native deployment on Pharos aligns with Morpho’s broader mission to extend trusted lending solutions into the RWA space, following earlier successes in private credit and tokenized stocks [3].

The first deployments will focus on institutional vault designs, leveraging Pharos’ expertise in credit modeling, liquidity routing, and custody. These vaults will be secured by real-world collateral such as trade receivables or private debt instruments, offering lenders access to yields backed by tangible assets. As the infrastructure matures, the platform is expected to expand access to retail users, marking a transition from traditional finance to a more inclusive and accessible model [4].

Pharos Network, founded by former leaders from AntChain and Microsoft, brings deep experience in credit modeling and blockchain infrastructure. This combination with Morpho’s proven lending framework positions the platform as a compelling force in the evolution of RWA finance. Analysts have noted that this partnership could redefine the intersection between DeFi and traditional finance, potentially turning tokenized real-world assets from a niche concept into a mainstream financial tool [5].

By enabling real-world assets to be tokenized and traded on-chain, Pharos and Morpho are expanding the scope of blockchain-based lending beyond speculative or digital-native assets. This move is likely to attract a broader range of participants, from institutional investors to retail users, into the RWA space. If the platform delivers on its promise, it could serve as a model for future integrations between traditional and decentralized finance.

Source:

[1] (https://cryptopotato.com/pharos-network-joins-morpho-launching-native-rwa-lending-infrastructure/)

[2] (https://blockchainreporter.net/morphos-9-b-lending-engine-goes-native-on-pharos-layer-1-for-rwa-finance/)