Pharos Network Integrates Morpho Lending for Tokenized Real-World Assets

Pharos Network has announced a partnership with DeFi lending platform Morpho to launch native lending protocols for tokenized real-world assets (RWAs) on its blockchain. The initiative aims to integrate Morpho’s advanced lending infrastructure directly into Pharos’ Layer 1, enabling RWAs to function within a DeFi-native lending framework. This move is designed to enhance the utility of tokenized assets by allowing institutions and liquidity providers to access on-chain lending markets, thereby improving capital efficiency and expanding the use cases for RWAs [1].

The collaboration is a response to the growing demand for institutional-grade financial tools in the DeFi space. Morpho, which has processed over $9 billion in user deposits, brings its proven lending infrastructure to Pharos, which offers an EVM-compatible, scalable environment for tokenized assets. By combining Morpho’s lending capabilities with Pharos’ compliance-focused infrastructure, the partnership seeks to create a hybrid financial ecosystem—referred to as RWAfi—that merges the transparency and composability of DeFi with the structured nature of traditional finance [2].

The RWA market has grown to a $25 billion sector, with an average monthly growth rate of 5% in 2025. Pharos has been instrumental in accelerating the adoption of RWAs by providing a secure and compliant on-chain environment for asset tokenization. With Morpho’s integration, the platform aims to take this a step further by enabling structured lending products, improved risk pricing, and more accessible yield opportunities for both institutional and retail participants [3].

Morpho’s Kirk Hutchison emphasized that the deployment of its infrastructure on Pharos aligns with the company’s commitment to scalable and transparent credit systems. The initiative is expected to offer greater flexibility for asset originators and liquidity providers, allowing them to leverage RWAs as collateral or lend them in a trustless and efficient manner. This represents a significant evolution in how RWAs can be utilized beyond mere trading [4].

The partnership also reflects broader industry trends toward integrating real-world financial instruments with blockchain technology. As regulatory clarity, such as the proposed GENIUS Act, reduces barriers for institutional participation in the on-chain economy, projects like Pharos and Morpho are positioned to lead the next phase of DeFi innovation by offering solutions that meet traditional financial standards while embracing decentralized infrastructure [5].

Pharos is also preparing to launch institutional-focused vaults and capital deployment frameworks, with Morpho playing a key role in refining the design of these financial products. The integration of Morpho’s lending infrastructure supports composability across Pharos’ existing tools, demonstrating the potential of RWAs to serve as the foundation for more complex and diversified financial applications [6].

Source:

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

[2] AInvest, [https://www.ainvest.com/news/pharos-morpho-launch-native-lending-real-world-assets-blockchain-2508/](https://www.ainvest.com/news/pharos-morpho-launch-native-lending-real-world-assets-blockchain-2508/)

[3] Crypto Economy, [https://crypto-economy.com/lending-giant-morpho-joins-pharos-network-to-revolutionize-rwa-finance/](https://crypto-economy.com/lending-giant-morpho-joins-pharos-network-to-revolutionize-rwa-finance/)

[4] Messari, [https://messari.io/project/morpho-labs](https://messari.io/project/morpho-labs)

[5] BlockchainReporter, [https://blockchainreporter.net/artgis-finance-and-att-global-join-forces-to-advance-defi-with-real-world-integration/](https://blockchainreporter.net/artgis-finance-and-att-global-join-forces-to-advance-defi-with-real-world-integration/)

[6] CryptoRank, [https://cryptorank.io/news/tap](https://cryptorank.io/news/tap)