Morpho Prepares Lending Markets Backed by Business Receivables

Morpho is preparing receivable-backed lending markets using Morpho Midnight, aiming to let businesses borrow against unpaid invoices and payment settlement claims while extending onchain credit beyond crypto collateral.

The proposed markets would use a business’s right to receive a payment as collateral. Eligible claims could include invoices awaiting payment and receivables from transactions awaiting settlement. The business would borrow against the expected payment rather than sell the claim.

Global factoring turnover reached €4.039 trillion in 2025, up 3.7% from €3.895 trillion in 2024. North American turnover was €160 billion, a 35.1% increase. Factoring provides funding by purchasing receivables; the planned Midnight markets would instead secure loans with them.

Each market would need a record of how much is owed and when payment is expected. It would also need controls to keep the same receivable from securing multiple loans. Those checks would connect a specific business payment claim to its onchain debt.

When the financed receivable is paid, the payment would first repay the outstanding loan. Any remainder would go to the borrower. Morpho’s plan also allows individual markets to restrict who can borrow or lend.

Morpho launched Morpho Midnight on July 21, while initially offering its app on Base for crypto-backed borrowing. The protocol provides fixed-rate loans with set terms. The proposed markets would apply it to claims on business payments.

Under Midnight’s existing lender-offer model, lenders specify an offer’s price and size, and borrowers choose from available offers. Markets define terms including maturity, collateral and liquidation parameters. Receivables would require the additional payment records and safeguards described in Morpho’s plan.

Coinbase launched fixed-rate loans backed by Bitcoin (BTC) through Midnight on Base on Sept. 22, the protocol’s first enterprise deployment. That product uses crypto collateral. The proposed markets would instead depend on payments owed to businesses.

“The first receivables-backed markets are expected to arrive soon,” Morpho co-founder Paul Frambot wrote. Morpho has not announced a launch date.