The Ethereum Foundation said it has allocated a total of 3,400 ETH to Morpho, with 1,000 ETH of that amount now placed in Morpho’s Vaults V2. With ETH near $2,239 on the day of the announcement, the move adds to a treasury strategy that leans on on-chain finance instead of selling large ETH holdings directly for fiat.
An expanding treasury plan that began in 2025
This was not the foundation’s first deployment into Morpho. In October 2025, it allocated 2,400 ETH and $6 million in stablecoins into Morpho yield vaults. At the time, the foundation linked that decision to Morpho’s alignment with open-source software principles and pointed to the launch of Morpho Vault V2 and Morpho Blue V1 under widely recognized open-source licenses.
Earlier in 2025, the foundation outlined a larger treasury overhaul, saying it could direct up to 50,000 ETH across major DeFi platforms including Compound and Spark. The stated shift was away from liquidating sizable ETH positions for fiat and toward using on-chain financial tools to support growth and ongoing operations.
ETH still dominates the foundation’s balance sheet
According to Arkham Intelligence, the Ethereum Foundation’s assets now exceed $820 million, with roughly $735 million held in ETH. The source material says a growing share of those holdings is being managed through decentralized protocols rather than sold for cash. That makes the Morpho allocation part of a broader treasury pattern, not a one-off experiment.
Morpho’s growth gave the protocol more weight in DeFi
Morpho expanded quickly through 2025. By year-end, its user base had climbed from 67,000 to more than 1.4 million. Total deposits on the protocol rose from $5 billion to $13 billion, while active loans reached $4.5 billion by the close of the year. Those numbers help explain why the protocol has drawn larger treasury allocations.
In November 2025, Morpho launched Vaults V2 with an expanded curator model that lets asset managers build customized on-chain lending products. The Ethereum Foundation allocated 1,000 ETH into that structure. The source also notes that real-world asset deposits on the platform increased to $400 million by the third quarter of 2025.
Total value locked reached $5.8 billion by March 2026
By early March 2026, Morpho reported about $5.8 billion in total value locked. As the protocol’s architecture evolved and adoption widened, other organizations also began looking at decentralized strategies for managing large treasuries. The foundation’s latest confirmation that 3,400 ETH has been committed to Morpho adds another clear data point to that transition.