Pharos and Morpho Launch Native Lending for Real-World Assets on Blockchain

Pharos Network has announced a strategic collaboration with Morpho to launch native lending infrastructure for real-world assets (RWA). This partnership aims to introduce efficient, risk-isolated lending solutions directly on-chain, enabling asset originators to access flexible credit markets while enhancing transparency and composability in the emerging RWA financial ecosystem. The integration of Morpho’s lending infrastructure into Pharos’s Layer 1 (L1) blockchain marks a pivotal step in bridging traditional finance and decentralized finance (DeFi) through structured lending products and scalable credit systems [1].

Morpho, which has facilitated over $9 billion in lending, is expanding its operations to Pharos, a high-performance blockchain designed to onboard real-world assets. By deploying its lending engine natively on Pharos, Morpho allows the creation of modular, isolated lending pools tailored to specific asset types, such as tokenized mortgages and trade receivables. This risk isolation mechanism ensures that the failure of one loan or asset class does not impact others, a crucial feature for institutional participants and large-scale projects [5].

Wish Wu, CTO and co-founder of Pharos, highlighted the strategic importance of the partnership, emphasizing that integrating Morpho’s infrastructure into Pharos’s mainnet establishes a foundation for a more transparent and efficient credit ecosystem. The platform aims to support complex, institution-grade lending strategies while preserving the modularity and openness typical of DeFi [7].

Kirk Hutchison, representing Morpho’s growth on new chains, noted that deploying natively on Pharos allows the platform to continue expanding its lending infrastructure into the RWA space. The partnership aligns with Morpho’s vision to build scalable, transparent credit systems and accessible yield opportunities for both institutional and retail markets [8].

Pharos plans to launch its first Morpho-powered lending vaults in the coming quarter, initially targeting institutional-grade setups. These vaults will leverage Pharos’s expertise in credit modeling, custody, and liquidity routing. Retail users will gain access to these pools in subsequent phases, enabling them to earn yields backed by real-world collateral. This move is expected to introduce a new level of accessibility and transparency to asset-backed lending, traditionally dominated by centralized financial institutions [9].

The collaboration is further supported by the credibility of Pharos’s founding team, including former leaders from AntChain—responsible for Alipay’s infrastructure—and researchers from Microsoft and Stanford. Combined with Morpho’s proven lending protocols, this partnership is well positioned to redefine how traditional finance and DeFi interact [10].

Source: [1] Pharos Network Joins Morpho to Launch Native Lending ... https://thedefiant.io/news/press-releases/pharos-network-joins-morpho-to-launch-native-lending-infrastructure-for-real-world-assets

[5] Pharos Taps Morpho to Power Institutional Lending for ... https://cryptonews.net/news/altcoins/31394739/

[7] Morpho's $9 B+ 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/

[8] Pharos Network And Morpho Join ForcesTo Launch Native Lending Infrastructure For Real-World Assets https://mpost.io/news/report/

[10] BTCUSD - Maestro Releases the 'State of BitcoinFi' Report https://www.advfn.com/stock-market/COIN/BTCUSD/crypto-news/96586875/maestro-releases-the-state-of-bitcoinfi-report