$6.7B in Morpho TVL meeting BitGo’s 5,500 institutional clients is the DeFi mullet hardening into actual distribution: users touch a custodian, the balance sheet routes into onchain credit. Aave and Compound now have to fight for shelf space inside custody and exchange UX, with protocol-native wallets becoming the smaller battleground. BitGo’s wrapper cleans up ops, not risk; curator incentives, oracle/liquidation depth, and collateral mix still decide whether idle-asset yield looks like repo or recursive crypto leverage.

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