Morpho Opens Robinhood Stock Tokens to Stablecoin Borrowing

Robinhood’s stock-token setup now sits on top of a lending market rather than only a trading wrapper, with Morpho accepting those tokens as collateral and Robinhood Chain already showing $1.14 billion in total value locked. That places Robinhood’s tokenized equities inside a DeFi credit workflow that already has defined collateral and loan settings. The setup matters because it brings a major consumer brokerage brand into onchain borrowing rather than stopping at tokenized exposure.

For users, the practical change is that stock tokens tied to names like NVDA, SPCX and SPY can now be pledged for stablecoin loans, with USDG named as the loan asset. That widens what holders can do with tokenized stocks, while also introducing liquidation thresholds that borrowers have to monitor. It also shifts more activity into Morpho’s lending rails instead of leaving those holdings idle in wallet form.

Tokenized stocks are being used in a way that blurs the line between brokerage products and DeFi infrastructure. That is attractive for people who want more ways to borrow against financial assets, but it also concentrates more trading, lending and liquidation mechanics into a single tokenized stack. Robinhood and Morpho are showing a version of DeFi that imports familiar Wall Street names, while keeping the borrowing process onchain.

What remains open is how widely this lending feature will be available across Robinhood Stock Tokens and how borrowers will use it in practice. The rollout details here identify specific markets and loan assets, but not the broader eligibility rules, limits or future expansions. It is also still unclear how much of Robinhood Chain’s TVL is tied to this new borrowing use case versus other activity on the network.