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The asset management firm managing assets exceeding $900 billion may acquire up to 90 million MORPHO tokens as part of a collaboration aimed at bolstering the DeFi credit market, as stated.
Statue of Apollo (Boston Public Library/Unsplash)
Key points:
- Apollo Global Management has formed a partnership to enhance lending markets utilizing Morpho’s on-chain protocol.
- This arrangement permits Apollo to purchase up to 90 million MORPHO tokens over a four-year period.
- This initiative follows BlackRock’s recent entry into decentralized finance, which included the listing of its tokenized fund and an acquisition of tokens from the decentralized exchange Uniswap.
Apollo Global Management (APO) is advancing further into the crypto sector, entering an agreement that could position the $938 billion asset manager as a significant token stakeholder in a decentralized lending platform.
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The firm has established a collaboration agreement with the Morpho Association, the French non-profit behind the Morpho protocol, allowing Apollo and its affiliates to acquire 90 million tokens in the forthcoming four years.
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The acquisitions may occur through open-market purchases, over-the-counter deals, and other arrangements, with ownership limits and transfer restrictions applying. Galaxy Digital UK served as the exclusive financial advisor to Morpho, as per the documentation.
In addition to the token purchases, Apollo and Morpho have indicated that they will collaborate to bolster lending markets built on Morpho’s protocol. Morpho supplies the infrastructure for on-chain lending markets and curator-managed vaults that distribute assets among them. Governance of the protocol is managed by holders of the MORPHO token. The acquisition of 90 million tokens would represent 9% of the total supply of the protocol’s governance token.
This agreement enhances Apollo’s growing presence in the blockchain space. Last year, the firm made a “seven-figure” investment in the blockchain initiative , which aims to transition traditional financial products on-chain. Apollo’s credit strategies have been tokenized through third parties. Tokenization expert Securitize issues ACRED, a token that offers exposure to the Apollo Diversified Credit Fund, while Anemoy provides ACRDX, which tracks Apollo’s global private and public credit strategies.
This development occurs as other asset managers explore decentralized finance options. Earlier this week, BlackRock, the largest asset manager globally, announced that it will make shares of its tokenized U.S. Treasury fund, BUIDL, tradable on decentralized exchange Uniswap and acquired an unspecified amount of the protocol’s governance token UNI .
