Apollo Partners with Morpho to Buy $90 Million in Crypto Tokens

TLDR

• Apollo Global Management has entered the crypto lending market by partnering with Morpho.
• Apollo will acquire up to 90 million Morpho tokens, representing 9% of the total supply.
• The partnership will span four years with Apollo acquiring tokens through various transactions.
• The collaboration aims to strengthen Morpho’s blockchain lending infrastructure.
• The price of Morpho’s token rose by 17.8% following the announcement of the partnership.

Apollo Global Management Inc., a major player in traditional finance, has announced a partnership with decentralized lending platform Morpho. This strategic deal will see Apollo take a substantial stake in the project, supporting its blockchain lending infrastructure. The partnership is expected to provide a boost to Morpho’s growth, as Apollo’s deep resources and experience in finance converge with the emerging DeFi space.

Apollo Joins Morpho with $90 Million Investment

Apollo Global Management has signed an agreement to purchase up to 90 million Morpho (MORPHO) governance tokens. The purchase will take place over the next four years, with Apollo acquiring 9% of the total 1 billion MORPHO token supply. Apollo will obtain these tokens through a mix of open-market purchases, over-the-counter (OTC) transactions, and other contractual arrangements.

Under the terms of the agreement, Apollo or its affiliates will be subject to trading and transfer restrictions on the tokens. The partnership reflects Apollo’s growing involvement in the digital asset sector and marks a significant move into the decentralized finance (DeFi) lending space. The deal is designed to help strengthen Morpho’s lending infrastructure while giving Apollo exposure to the crypto market.

Morpho’s Market Impact and Growth

Morpho is currently the sixth-largest decentralized finance protocol by total value locked (TVL), with $5.8 billion in assets. The platform provides decentralized lending markets and curated investment vaults for users to earn yield. This collaboration with Apollo further enhances Morpho’s potential as it continues to develop its blockchain-based financial services.

The partnership has already had a positive impact on Morpho’s token price, which rose by 17.8% over the weekend. The price of MORPHO climbed from around $1.12 on Friday to $1.32 at the time of writing. However, despite this short-term increase, the asset is still down by 38% over the past year, following a broader downturn in the crypto market.

Apollo Expands Crypto Exposure Through Partnerships

Apollo Global Management has been increasing its exposure to crypto and blockchain in recent years. In addition to this deal with Morpho, Apollo partnered with Coinbase in 2022 to explore stablecoin credit strategies. The firm also made an undisclosed investment in Plume, aiming to enhance real-world asset tokenization infrastructure.

Apollo’s push into the crypto market is part of a wider trend among traditional finance firms seeking to tap into digital assets. By investing in blockchain and decentralized finance platforms like Morpho, Apollo aims to position itself at the intersection of traditional and digital finance.

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