Morpho Deposits in RWA Exceed $2.14 Billion with a Utilization Rate of 42%

Deposits in the Morpho protocol in the realm of tokenized real-world assets (RWA) have surpassed the $2.14 billion mark. This indicates that institutions have acquired more than $2 billion in tokenized assets, which are now used not only for long-term investments. The protocol allows institutions to pledge collateral and borrow against it: $894 million has been raised against deposits, corresponding to a utilization rate of 42%. Among the acquired assets are BUIDL from BlackRock and USDY from Ondo Finance. The borrowed funds are directed towards low-risk yield strategies, such as purchasing tokenized U.S. Treasury bonds for additional income.

Morpho's founder and CEO, Paul Frambo, stated that this is the second stage of implementing tokenized assets: tokenization was the first step, and using them to attract financing and build cheap global credit markets on the network is the second. He noted, "Morpho will make every RWA productive."

As of Q4 2026, Morpho leads in RWA productivity on the network. The total value locked in DeFi for RWA is $4.36 billion with an average utilization rate of 14%. With Morpho's rate at 42%, the protocol provides nearly four times higher RWA productivity compared to the market average. In terms of borrowing, Morpho ranks first among similar protocols, followed by Kamino Lend on Solana with $433 million and Grove Finance with $395 million. Aave V3 ranks fourth with $391 million—approximately half the RWA productivity compared to Morpho.

Morpho's leadership has caused friction with Aave: the parties promote different approaches to classifying network vaults and their regulatory framework.

The protocol's growth does not bring direct price benefits to the MORPHO token. Current fees are disabled to attract more users as the cheapest lending alternative, resulting in zero revenue. However, if Morpho activates fees and starts token buybacks, it could lead to a direct increase in their value. For now, the token's price depends more on the overall market sentiment than the protocol's growth.

On the charts, MORPHO holds the $2.0 level, having recovered by 12% over the past three days. According to the chart, to continue the recovery, the price needs to surpass the $2.26 mark.