Robinhood stock tokens go live on Morpho as loan collateral

24 Oct 2026

24 Oct 2026, 04:36 UTC+02:00

Tokenized stocks just became borrowable collateral in DeFi at scale. Since 22 October, holders of Robinhood stock tokens can pledge them on Morpho to borrow USDG, a dollar stablecoin, without selling their positions.

How it works

The loans run through isolated markets on Robinhood Chain, the company’s own network, with Morpho as the underlying open credit network. Curators set compliance controls on each market. Because of regulatory restrictions, the product is available only to non-US persons and jurisdictions.

At launch, NVDA and SPCX markets carry a 62.5% liquidation loan-to-value threshold, while SPY carries 77%. Once debt reaches that share of collateral value, the position can be liquidated. The tokens give economic exposure to the underlying shares but no voting rights or direct ownership, according to Robinhood’s documentation.

A growing partnership

The launch extends a relationship that began in July, when Morpho started powering Robinhood Earn, a USDG yield product that drew more than $1 billion in deposits by mid-October. Robinhood Chain went live on 1 July and had recorded about $15 billion in cumulative stock token volume and roughly 200,000 stock token holders as of 12 October. Because Morpho is open, outside apps can integrate the new markets.

The weekend problem

Stock markets close on weekends while onchain loans run around the clock. When price feeds resume after a gap, a sharp move can push positions straight past the liquidation line. Analysts note that borrowers need generous collateral headroom.

What it means for traders

• Leave a buffer: borrowing near the maximum against a volatile stock like NVDA invites liquidation after weekend or earnings gaps.
• Know what you own: stock tokens are not shares. Read the issuer terms.
• Exchanges offer tokenized stocks too: several major platforms list stock perpetuals and tokens. Compare them in our exchange comparison, with BingX and OKX among our top picks; see the BingX review.

Sources

• Crypto Briefing: Robinhood stock tokens go live on Morpho as loan collateral
• Robinhood: Stock Tokens - Robinhood Chain Documentation

News is for information only and is not financial advice. More crypto news