The Journal · Credit
TradFi will move when the spread moves.
Open credit does not abolish the intermediary. It makes the intermediary contestable. That is the commercial argument.
At Korea Blockchain Week, Morpho’s Paul Frambot made the only case for onchain finance that a treasurer is obliged to take seriously. Traditional finance will not migrate because a conference said so. It will migrate when borrowers pay less and lenders earn more, because more capital can see the same risk.
He pointed at lending products at firms such as Coinbase and Robinhood moving onto Morpho, where a borrower can reach competing liquidity instead of a single balance sheet. Coinbase has since offered fixed-rate USDC loans backed by bitcoin, through Morpho Midnight on Base: a defined rate and a repayment date, not only a floating one. The design claim is modular markets in which lenders choose the risk they will fund.
In this piece
- 01A loan is a stack of margins
- 02The front door stays branded
- 03Competition without a data-room dump
- 04Stop promising to replace the bank
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