Why is Morpho up today?

Morpho is up 9.8% over 24 hours to $2.81 and 26.8% on the week, clearly outpacing Bitcoin, which is flat on the day and up 10.3% over seven days. The standout catalyst is distribution: Coinbase has expanded its Morpho-powered lending product to let users borrow USDC against Bitcoin at a fixed rate with a locked repayment date — described as the first enterprise-scale deployment of Morpho Midnight and a break from on-chain lending's variable-rate norm.

Morpho is also at the center of a governance and regulatory debate. Founder Paul Frambot proposed splitting onchain vaults into "noncustodial" and "discretionary" categories for regulators, drawing pushback from Aave's Stani Kulechov, who called the split "self-serving," while vault builders argued a timelock does not remove the manager.

The wider tape is mixed rather than supportive: a $350 million drain from wallets labeled as Bitget's, the Fed's new GENIUS Act stablecoin reserve and capital proposals, New York's suit against Polymarket, and the 30-year Treasury yield at 5.44%, its highest since 2004.