BTC Liquidity Meets Morpho’s Lending Engine

PLUS: Whales rotate $456M from BTC to ETH, DOJ clarifies open-source coding isn’t a crime, Paradigm holds $850M for DeFi and prediction markets, and Metaplanet raises $881M to expand Bitcoin holdings.

Author

Michael Stinson
August 29, 2025

Happy Friday, Maestros!

Welcome to a another edition of the Bitcoin Renaissance!

This week, whales moved $456M from Bitcoin into Ethereum, while the DOJ clarified that open-source coding without malicious intent isn’t criminal. Paradigm still has $850M to deploy across DeFi and prediction markets, Morpho gained momentum in the lending space, and Metaplanet launched an $881M raise to expand its Bitcoin stack.

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🚀 Featured Stories

Whales Rotate from Bitcoin to Ethereum. Big players are shifting capital from Bitcoin to Ethereum. $456 million in ETH inflows were observed, signaling a growing appetite for altcoin exposure.

DOJ Clarifies: Writing Open Source Code without Malicious Intent Isn’t a Crime
At a Wyoming summit, DOJ officials stated that simply writing open-source cryptocurrency code isn't criminal, so long as there’s no malicious intent, providing clarity and relief for developers.

Paradigm Still Has $850M Fund to Deploy, Weighing on DeFi, Prediction Markets. Paradigm revealed it still has more than half of an $850 million fund to deploy. The investment firm highlighted continued support for DeFi, open source, and prediction markets.

Metaplanet Raises $881M to Expand BTC Holdings. Metaplanet is launching a massive $881 million fundraise to significantly boost its Bitcoin holdings, betting on institutional interest in a more mature BTC market cycle.

💡Spotlight: Morpho

Morpho is a permissionless, non-custodial lending protocol built on Ethereum and Base that enables efficient on-chain borrowing and lending through isolated markets and vault infrastructure. As the third-largest lending protocol by total value locked, Morpho has reached $3.65 billion in assets positioning itself as core DeFi infrastructure. The protocol is now expanding into Bitcoin-linked assets through cbBTC integration, bringing institutional-grade lending primitives to Bitcoin's ecosystem. Users can get a USDC loan on Coinbase, without selling their bitcoin.

🛠️ Key Features

  • Isolated Market Architecture: Users can create isolated, customizable markets for overcollateralized crypto loans with tailored risk parameters and collateral types.

  • Morpho Vaults: Advanced vault system with DAO governance that optimizes yield generation and risk management for lenders.

  • Permissionless Deployment: Anyone can launch new lending markets without centralized approval, enabling rapid expansion into emerging assets like cbBTC

  • Cross-Chain Infrastructure: Operating on Ethereum and Base with secure, immutable infrastructure designed for institutional adoption

The life cycle of a Bitcoin-backed loan on Morpho.

Recent News

Morpho Protocol experienced 150% TVL growth since its token launch, demonstrating strong market adoption and user confidence. The protocol has integrated cbBTC markets, allowing Bitcoin holders to use their assets as collateral for USDC borrowing through trusted platforms like Coinbase. Major wallet integrations include Trust Wallet and Ledger Live using Morpho as their default yield generation engine, expanding access to Bitcoin-linked earning opportunities across retail and institutional users.

The Future

Morpho is positioning itself as foundational infrastructure for Bitcoin-enabled DeFi lending. The protocol plans to expand cbBTC market depth, introduce additional Bitcoin-linked collateral types, and develop cross-chain lending bridges. As Bitcoin adoption accelerates among institutions and retail users, Morpho's isolated market architecture provides the flexibility needed to create sophisticated Bitcoin lending products while maintaining the security and decentralization that Bitcoin users demand.

Learn more here!

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