Pharos Network, a Layer 1 blockchain focused on RWAfi, has joined forces with Morpho, a lending network with over $9 billion in total deposits, to bring native lending infrastructure to the Pharos mainnet, as reported to Finbold on August 7.
Thrilled to announce Pharos will integrate with @MorphoLabs, one of the most trusted lending networks
— Pharos | Testnet Live (@pharos_network) August 7, 2025
By embedding Morpho’s lending framework into the Pharos Mainnet, we support intricate, institutional-grade strategies while maintaining the adaptability and openness synonymous… pic.twitter.com/iVnvfkm33V
The collaboration aims to establish institutional-grade lending rails within the on-chain real-world asset ecosystem. Morpho’s deployment on Pharos will deliver capital-efficient lending with isolated risks to RWA vaults, creating flexible credit markets for asset originators and liquidity providers.
The integration positions Morpho as the official lending infrastructure provider for Pharos and supports the broader RWAfi strategy alongside players like Ant Digital, R25, and Gauntlet.
The collaboration offers both DeFi-native and institutional participants with transparent, modular tools for lending and credit risk modeling.
A more transparent and capital-efficient on-chain credit ecosystem
“For us, working together with Morpho is about building trust and composability at the core of RWAfi,” said Wish Wu, CTO and Co-Founder at Pharos. “By integrating Morpho’s lending infrastructure directly into our mainnet, we’re laying the foundation for a more transparent and capital-efficient on-chain credit ecosystem. It enables us to support complex, institution-grade lending strategies while preserving the modularity and openness that define DeFi.”
“Deploying natively on Pharos allows us to keep extending Morpho’s most trusted lending infrastructure to the real-world asset space following initial success like private credit and tokenized stocks,” said Kirk Hutchison, New Chains Growth at Morpho. “Pharos’ vision for RWAfi aligns with our commitment to transparent and scalable credit systems. Together, we are creating a powerful infrastructure for structured lending products, better risk pricing, and more accessible yield opportunities across both institutional and retail markets.”
Morpho’s protocol will support Pharos’ upcoming vault launches and capital deployment frameworks. Initial deployments will focus on institutional vault designs, enhanced by Pharos’ capabilities in credit modeling, liquidity routing, and custody.
The native integration was designed to enable composability with Pharos’ existing infrastructure and support experimentation around RWA yield structures and capital matching algorithms.
Featured image via Shutterstock.
