USDe supply increases by more than $700 million in September, now taking the No. 2 spot for collateral assets on Morpho.

The market has turned back to MORPHO not because it’s rising, but because its role is shifting: from a lending protocol toward an institutional collateral hub.

Two pieces of evidence.

At the Korea Blockchain Week, the founder said that institutions don’t lack underlying technology for tokenization on-chain—the bottlenecks are control over risk, interest rates, and compliance. As borrowing costs fall, traditional finance will naturally come.

The U.S. Blockchain Association has established a Vaults working group. Morpho is listed among the members, and it will communicate directly with regulators about compliance paths for this kind of structure.

Add to that a publicly discussed claim that a certain investment bank has a $60 target price for MORPHO in 2030, and the narrative was rapidly amplified. But that’s a sell-side view, not cash flow.

The real question is: if the collateral size grows, does protocol revenue also grow—or is it just someone else’s stablecoin sitting overnight on their own ledger?