Robinhood Earn launches onchain lending for eligible US customers, offering 7% APY on USDG deposits via Morpho.
DeFi & Yields ·
Robinhood Earn has launched an onchain lending product for eligible US customers, allowing deposits of USDG stablecoin through self-custody wallets to earn an estimated 7% APY. The lending infrastructure operates on Morpho, a modular DeFi protocol that isolates individual credit markets rather than pooling deposits into shared reserves, reducing contagion risk across asset pairs.
Morpho has become a significant institutional infrastructure layer in decentralized finance, with over $11 billion in deposits and backing from major venture firms. The protocol's minimal core architecture delegates risk management decisions to higher-layer applications—in this case, Robinhood's yield vault—allowing flexibility in interest rate models and collateral terms. Robinhood's integration follows similar recent moves by other financial platforms to offer yield-generating products on stablecoins.
The rollout targets US customers meeting eligibility criteria, but the material does not specify minimum deposit amounts, lock-up periods, or how Robinhood will manage operational risk around liquidations and market volatility. It also remains unclear whether this offering will expand to additional jurisdictions or stablecoin types.