- The US asset manager Apollo Global Management is making a strategic entry into DeFi. He secured 9% of the token share of the Swiss Morpho Association using a purchase option.
- The transaction is scheduled to last 4 years and combines stock market purchases, OTC deals and more complicated acquisition models. This creates a cooperation between two global representatives of TradFi and DeFi.
Morpho currently manages a TVL of around $5.8 billion and is considered one of the most efficient lending protocols in the DeFi sector. The entry of the TradFi group Apollo gives Morpho access to credit markets that impress with transparency, automation and real-time risk management.
The Morpho Association emphasizes that they want to develop new onchain credit markets together and professionalize existing structures. Apollo is thus positioning itself early in a segment that is increasingly seen as the foundation of tokenized financial products.
Competition between asset managers
The move comes in a market environment in which large asset managers are massively expanding their blockchain strategies. BlackRock has already presented its RWA initiatives, and Apollo is now following suit with a clear focus on DeFi lending and governance influence.
With a share of up to 9% of MORPHO tokens Apollo receives direct access on voting, incentive structures and governance decisions – a novelty that redefines the balance of power between decentralized communities and institutional investors.
Market reaction and importance for the industry
The MORPHO token reacted immediately to the report and temporarily gained double digits, but remains in the red for the year.
The participation is still a strong signal for the market: DeFi lending is increasingly perceived as a professional, scalable sector. The integration of onchain and offchain lending products is likely to accelerate as new questions arise about the regulation of large TradFi players.
In the long term, the Apollo Morpho deal could be seen as a turning point where institutional capital began to actively shape the structures of DeFi credit markets.
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