Robinhood taps Morpho for onchain yield Earn product

Robinhood has chosen Morpho to support its new Earn product, which will offer on-chain yield to eligible US customers through the Robinhood app.

The product will roll out progressively across Robinhood's US customer base and is designed to generate yield on idle balances held in USDG, a dollar-pegged stablecoin. Users will access it through Robinhood's app via a self-custody wallet, while lending activity runs through Morpho's blockchain-based credit network.

Under the structure outlined by the companies, funds supplied through Robinhood Earn are deposited into a Morpho vault and then allocated across Morpho markets. Borrowers post collateral from protocols such as Spark, Ethena, and Maple to borrow USDG, and the yield paid to users comes from the interest charged on those loans.

Robinhood Chain serves as the settlement layer for the product, while Steakhouse Financial curates the vault infrastructure that supports it. The arrangement is intended to let Robinhood customers access yield within the app without directly interacting with decentralised finance protocols.

The move gives Morpho a role in one of the largest retail investing platforms in the US. Robinhood says it holds USD $377 billion in platform assets across 27.7 million funded customers.

Retail push

The agreement reflects a broader shift in the digital asset market, as consumer financial platforms increasingly rely on external blockchain infrastructure rather than building lending systems in-house. For Robinhood, it is part of an effort to package decentralised finance functions into a mainstream retail product with a simplified user interface.

Morpho now serves as the core credit infrastructure for some of the most widely used retail financial platforms in the US, according to the company. It describes itself as an open lending network with more than USD $11 billion in deposits, connecting lenders and borrowers through on-chain markets.

The network's model relies on market-based competition between lenders and borrowers, with rates set in real time. That differs from more traditional financial arrangements, where pricing and credit intermediation are handled within proprietary systems.

Paul Frambot, Co-founder of Morpho, outlined the company's view of the partnership.

"Robinhood is the platform that made investing accessible to a generation, and we are very excited to partner with them to bring the benefits of on-chain finance to their mainstream customer base," Frambot said.

"Decentralized finance technology works best as infrastructure, allowing brands and institutions to offer products that are more open, more transparent and more competitive than those built on traditional financial rails," he added.

Funding backdrop

The launch follows Morpho's USD $175 million funding round, co-led by Paradigm, a16z crypto and Ribbit. Apollo Funds, Circle Ventures, VanEck and other investors also participated, bringing Morpho's total funds raised to more than USD $250 million.

That funding signalled the company's intention to deepen ties with larger financial brands and institutions. The Robinhood arrangement is one of the clearest examples so far of a consumer-facing platform embedding Morpho's infrastructure in a retail product.

For Robinhood, the move extends its push into digital assets and related financial services beyond trading. Yield products tied to stablecoins have become an increasingly contested area for crypto groups and fintech firms seeking to attract customer balances that might otherwise sit idle.

The use of USDG also puts stablecoins at the centre of the proposition. These tokens are designed to maintain a fixed value against fiat currencies and are increasingly used as the base asset for lending, settlement and cash management products across digital finance markets.

Gaëtan Thabot, Director of partnerships at Robinhood Crypto, said the aim was to make such tools easier for users to access.

"We believe everyone should have access to the most efficient and innovative financial tools available," Thabot said.

"By leveraging Morpho's open credit network alongside USDG and Robinhood Chain, we are giving our eligible users the ability to seamlessly access the competitive advantages of decentralized finance. We're thrilled to empower our eligible users with a simple, robust way to put their digital assets to work," he added.