Robinhood Stock Tokens are now accepted as collateral on Morpho's isolated lending markets, allowing non-US holders to borrow against tokenized equities without liquidating positions.
DeFi & Yields ·
Robinhood Stock Tokens are now accepted as collateral on Morpho's isolated lending markets, enabling holders to borrow USDG against tokenized equities without liquidating positions. Robinhood Chain manages the tokenization infrastructure while Morpho operates the lending markets. Early configurations show NVDA and SPCX tokens with 62.5% liquidation thresholds, while SPY sits at 77%.
The integration allows equity exposure to function as working capital while remaining onchain. Stock tokens that trade beyond traditional market hours can now immediately back borrowing once a qualifying wallet is connected. US-based persons remain excluded under existing product restrictions. For non-US holders already holding these tokens, the mechanism eliminates the need to sell positions to access liquidity.
The extent to which borrowing volume on these stock-token collateral books will grow relative to existing Morpho loans on Robinhood Chain remains uncertain, as does whether additional applications will begin routing credit against these equities in coming weeks.