Morpho Opens Robinhood Stock Tokens to Stablecoin Borrowing

Morpho said on Oct. 22 that Robinhood Stock Tokens are live as collateral on its credit network, allowing holders to borrow stablecoins without selling their tokenized equity exposure.

The change gives developers a shared lending infrastructure to integrate into their own applications on Robinhood Chain. “Any app can integrate credit markets for Stock Tokens,” Morpho said in its announcement.

Borrowing against these tokens was already available through another application: Paboxo announced deposits and Stock Token borrowing on Robinhood Chain on Oct. 19. Morpho’s announcement extends the available lending infrastructure rather than introducing the underlying ability to borrow against Stock Tokens.

$USDG Loans Against Stock Tokens

Morpho’s listed-market API includes markets using Robinhood’s NVDA and SPCX tokens as collateral with a 62.5% liquidation loan-to-value threshold. A listed SPY market has a 77% threshold. These markets lend $USDG, the Global Dollar stablecoin.

The threshold sets the debt-to-collateral ratio above which a position becomes eligible for liquidation; it is not a guaranteed borrowing rate or a protection against losses. Different markets can use the same collateral with different oracle addresses, so the token symbol alone does not identify a loan’s pricing arrangement.

Robinhood’s developer documentation says its Stock Token price feeds use Chainlink and update 24/5, following market hours. The feeds incorporate a multiplier that adjusts for dividends and stock splits, rather than simply returning the underlying share’s headline price.

Market-hours safeguards are application-specific. Paboxo’s published explanation says its new borrowing, liquidations and collateral withdrawals against outstanding debt pause when the relevant stock market is closed, while repayments and collateral additions remain available. Those rules describe Paboxo, not necessarily the separate Morpho markets.

Robinhood describes Stock Tokens as tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They provide economic exposure to shares and ETFs, but do not confer legal or beneficial rights in the underlying securities. Its disclosures prohibit offers, sales or delivery in the United States or to U.S. persons.