Pharos and Morpho Launch Native RWA Lending on Layer 1

Published: 2025-08-10 10:33:26 |

Pharos Network has partnered with Morpho to launch native RWA lending on its EVM-compatible Layer 1 mainnet. This RWA lending integration embeds Morpho’s $9 billion on-chain lending infrastructure into Pharos, creating institutional-grade credit pools with isolated risk modules. The RWA lending system will power new vaults and capital deployment frameworks, letting institutions and professional investors deposit tokenized real-world assets as collateral, borrow on demand, and earn competitive yields. Dubbed RWAfi, the initiative blends DeFi’s composability with TradFi compliance, focusing on institutional vaults, structured lending products, risk pricing, and scalable credit systems. With the real-world asset market set to grow at 5% monthly and exceed $600 billion by 2030, this alliance accelerates the mainstream adoption of RWA lending, unlocking new yield opportunities for institutional and retail traders.

Bullish

For traders, this native RWA lending partnership is bullish for both Pharos and Morpho tokens. In the short term, integrating Morpho’s $9 billion lending infrastructure will drive network activity, boost demand for collateralized RWA positions, and lift token valuations. New vaults and structured credit products are likely to attract institutional users and expand on-chain liquidity. Over the long term, the RWAfi initiative merges DeFi composability with TradFi compliance, positioning Pharos as a leading platform for real-world asset finance. As the RWA market scales toward a projected $600 billion by 2030, sustained growth in RWA lending use cases will support token utility and value appreciation, underpinning a positive outlook for market stability and trader yields.