Morpho launches fixed-rate Midnight USDC loans on Ethereum
Launch details
Morpho opened its Midnight fixed‑term, fixed‑rate lending protocol on Ethereum on September 8, 2026. The new markets let users borrow USDC, a stablecoin pegged to the US dollar, using tokenized Bitcoin (WBTC or cbBTC) as collateral.
Key numbers
- USDC markets backed by WBTC and cbBTC are live.
- About $7.41 million in total deposits and $2.63 million in outstanding loans are shown on the Ethereum‑filtered markets page.
- Roughly $5 billion held in Morpho Vaults cannot be allocated to Midnight until a DAO vote.
Vault capital remains blocked
Midnight is not yet available to Morpho Vaults, the protocol’s curated deposit products. CEO Paul Frambot said a single DAO transaction is needed to enable vault allocations, and the team wants users to become familiar with Midnight first.
Future activation
Frambot expects the DAO to approve vault allocations in the fourth quarter of 2026. Until then, Midnight must attract capital through direct offers rather than the existing vault deposit base.
Why it matters
Midnight offers rate certainty: borrowers lock in a fixed interest cost, and lenders lock a return, unlike Morpho Blue’s open‑ended loans where rates change each block.
