Apollo Global Management, a prominent asset manager overseeing approximately $938 billion in assets, has announced a strategic partnership with the Morpho Association, a French non-profit organization. This collaboration will enable Apollo to acquire up to 90 million MORPHO tokens over the next four years, positioning the firm as a significant stakeholder in the decentralized finance (DeFi) lending sector.
The agreement allows Apollo and its affiliates to purchase the tokens through various methods, including open-market transactions and over-the-counter deals. However, these acquisitions will be subject to specific ownership caps and transfer restrictions. Galaxy Digital UK is serving as the exclusive financial advisor to Morpho in this arrangement.
In addition to the token purchases, Apollo and Morpho plan to collaborate on enhancing lending markets that utilize the Morpho protocol. This protocol provides essential infrastructure for on-chain lending markets and curator-managed vaults, facilitating the allocation of assets. The governance of the protocol is managed by the holders of the MORPHO token, and Apollo’s planned acquisition would represent approximately 9% of the total supply of this governance token.
This latest move reflects Apollo’s ongoing commitment to expanding its presence in blockchain technology. In the previous year, the firm made a significant investment in another blockchain initiative, PLUME, which aims to integrate traditional financial products into the blockchain ecosystem. Additionally, Apollo’s credit strategies have already been tokenized through partnerships with third-party specialists. For instance, Securitize has issued ACRED, a token linked to the Apollo Diversified Credit Fund, while Anemoy has introduced ACRDX, which tracks Apollo’s global credit strategies.
Apollo’s entry into the DeFi space comes at a time when other major asset managers are also exploring decentralized finance. Recently, BlackRock, the largest asset manager globally, announced its intention to make shares of its tokenized U.S. Treasury fund, BUIDL, tradable on the decentralized exchange Uniswap. BlackRock also disclosed a purchase of an undisclosed quantity of the governance token UNI associated with the Uniswap protocol.
Apollo Global Management has entered the decentralized finance market through a partnership with the Morpho Association, allowing for the acquisition of 90 million MORPHO tokens. This move reflects a broader trend among major asset managers exploring blockchain technology and DeFi solutions.