Morpho & Gelato Revolutionize Crypto Loans: Instant Collateralized Borrowing Goes Live

DeFi just got simpler—and Wall Street bankers just got another reason to sweat. Morpho and Gelato have flipped the script on crypto-backed loans, launching a one-click solution that turns your digital assets into liquidity without the usual bureaucratic circus.

No more begging banks for approval. No more waiting weeks for funds. Just stake your crypto and go—because in 2025, your portfolio should work as hard as you do.

Here’s the kicker: while traditional finance still charges you fees just to hold your money, this system cuts out the middleman entirely. Ironic, isn’t it? The 'risky' crypto space now offers more straightforward loans than your neighborhood credit union.

One tap. Instant cash. And not a single suit in sight. The future of borrowing? It’s already here—and it doesn’t care about your FICO score.

Crypto loans won’t require credit checks

According to Morpho and Gelato, these loans are meant for both retail and institutional users. The platform will include features such as one-click borrowing with collateral, as well as wallet creation with social logins. At the same time, borrowing will not require credit checks.

Morpho’s non-custodial loans are available on Polygon, Arbitrum, Optimism, and Scroll, and will soon be available on the Katana blockchain. The two teams also stated that they would add support for more blockchains in the future.

Crypto-collateralized loans are an attractive way for holders to leverage their digital assets. They enable users to get liquidity from their crypto without having to sell. Moreover, some traders use crypto loans as leverage instruments to seek more upside in trading.

Still, there are risks involved in crypto lending, both for users and platforms. For instance, a sharp drop in crypto prices could RENDER a platform’s collateral insufficient to back outstanding loans, potentially leading to a collapse.