What if the future of lending doesn’t need banks at all?

Paul Frambot, cofounder and CEO of Morpho, explains what it means to build lending infrastructure without banks, and why DeFi’s real breakthrough isn’t “risk-free” loans, but open, onchain markets that make lending more transparent, competitive, and efficient.

In this conversation, Paul breaks down the biggest misconception in DeFi lending, how to think about risk onchain, why institutions are learning faster than expected, and where banks, asset managers, fintechs, and stablecoins fit into the next wave of adoption.

He also shares his long-term vision for finance: a world where open blockchain infrastructure replaces siloed financial systems, access to capital gets broader, and financial products become cheaper, more personalized, and easier to build.

Highlights:

0:00 Intro
0:36 What Morpho actually does
1:22 DeFi’s biggest misconception
5:26 Why Wall Street is paying attention now
6:46 Who’s adopting onchain finance first: Banks or asset managers?
9:57 The race for a Euro stablecoin
10:49 The future of finance, 5–10 years out
11:16 Why finance is still broken
13:30 What open mortgage and credit markets could become on open blockchains
15:14 The worst advice Paul's received as a founder
17:17 What's wrong with an $8 croissant (besides the obvious)

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How DeFi lending actually works (with Paul Frambot, cofounder and CEO of Morpho Labs)

a16z crypto show

How DeFi lending actually works (with Paul Frambot, cofounder and CEO of Morpho Labs)