Robinhood stock tokens can now do more than sit in a wallet. As of October 22, 2026, holders can post them as collateral on the Morpho lending protocol and borrow stablecoins against them.
The setup lets users borrow USDG, a dollar-pegged stablecoin, using tokenized equities like NVDA and SPY. The markets run on Robinhood Chain, the company’s newly launched network.
How the new markets work
The loans run through isolated markets on Robinhood Chain. Morpho serves as the underlying open credit network.
Compliance is handled by curators, who set the controls on these markets.
The collateral menu at launch includes:
- NVDA at a 62.5% liquidation loan-to-value threshold
- SPCX at a 62.5% liquidation loan-to-value threshold
- SPY at a 77% liquidation loan-to-value threshold
The liquidation loan-to-value, or LLTV, is the tripwire. If your debt climbs to that share of your collateral’s value, the position can be liquidated.
One major caveat: the product is available only to non-US persons and jurisdictions, due to regulatory restrictions.
The tokens themselves also come with limits. Tokenized stocks offer economic exposure to the underlying shares, but they carry no voting rights or direct ownership.
The road to this launch
This isn’t Robinhood’s first collaboration with Morpho. The two partnered back in July 2026, when Morpho’s infrastructure began powering Robinhood Earn, a yield product for USDG deposits.
That product has been busy. Robinhood Earn drew over $1 billion in deposits by mid-October 2026.
Robinhood Chain itself launched on mainnet on July 1, 2026. In just over three months, it recorded about $15 billion in cumulative stock token trading volume as of October 12, 2026.
The chain has also drawn approximately 200,000 stock token holders in that window.
What this means for traders and DeFi
The most direct benefit is for holders who want liquidity without selling. Before this, getting cash out of a tokenized NVDA position meant exiting it.
The flip side is the usual one with leverage. A sharp slide in NVDA could push a loan past the 62.5% line, triggering liquidation.
Morpho’s role as an open credit network also opens the door for others. External applications can integrate with the Morpho-powered markets, which could allow third-party developers to build new products on top of this collateral base.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.