Morpho has expanded its lending services on Base by opening USDC borrowing markets for five Coinbase tokenized stocks.<\/p>\n\n\n\n
The supported assets include tokenized versions of Apple, Alphabet, Nvidia, Meta Platforms, and SpaceX. Users can deposit these stock tokens as collateral and borrow USDC without having to sell their positions.<\/p>\n\n\n\n
So far, around $104,401 worth of tokenized stocks has been supplied as collateral, while approximately $54,652 in USDC has been borrowed against them.<\/p>\n\n\n\n
The new markets give eligible users another way to access liquidity from tokenized equity holdings while continuing to maintain exposure to the underlying assets.<\/p>\n\n\n\n
Morpho\u2019s lending markets currently support Apple (AAPLc), Alphabet (GOOGLc), Nvidia (NVDAc), Meta Platforms (METAc), and SpaceX (SPCXc).<\/p>\n\n\n\n
Coinbase currently has 10 tokenized stocks available on Base, but only five have corresponding Morpho lending markets.<\/p>\n\n\n\n
Amazon, Microsoft, Strategy, SanDisk, and Tesla tokens are not yet supported by the protocol\u2019s lending markets.<\/p>\n\n\n\n
The five markets were initially deployed on Sept. 7, but borrowing activity remained relatively small during their first several days.<\/p>\n\n\n\n
That changed on Sept. 16, when outstanding borrowing increased sharply from about $503 to more than $42,000 within roughly two hours.<\/p>\n\n\n\n
Borrowing has since increased further, reaching around $54,652.<\/p>\n\n\n\n
The lending markets allow holders of supported Coinbase stock tokens to use their assets as collateral and borrow USDC.<\/p>\n\n\n\n
This means an investor holding tokenized Nvidia or Apple shares, for example, can potentially access stablecoin liquidity without immediately selling those assets.<\/p>\n\n\n\n
Morpho currently provides variable-rate lending markets alongside fixed-rate options through its Midnight lending system.<\/p>\n\n\n\n
However, all existing borrowing activity involving the Coinbase stock tokens is currently taking place through variable-rate markets.<\/p>\n\n\n\n
The fixed-rate Midnight markets have yet to record outstanding loans for these assets.<\/p>\n\n\n\n
Coinbase first introduced tokenized versions of Apple, Nvidia, Meta, and Alphabet in August.<\/p>\n\n\n\n
It later added another six assets, including Amazon, Microsoft, Strategy, SanDisk, SpaceX, and Tesla, bringing the total number of Coinbase stock tokens on Base to 10.<\/p>\n\n\n\n
The initial tokenized stocks are backed one-to-one by underlying shares held through a segregated custody arrangement.<\/p>\n\n\n\n
The tokens provide beneficial interests in the underlying securities and can remain in self-custody wallets while being used across compatible applications on Base.<\/p>\n\n\n\n
Coinbase Onchain SPV Ltd., an entity incorporated in Abu Dhabi Global Market, issues the securities.<\/p>\n\n\n\n
The products are designed for eligible investors outside the United States and are not registered under the U.S. Securities Act.<\/p>\n\n\n\n
Collateral requirements vary depending on the tokenized stock being deposited.<\/p>\n\n\n\n
Morpho’s Apple, Nvidia, Meta, and SpaceX markets have a liquidation loan-to-value ratio of 62.5%.<\/p>\n\n\n\n
Alphabet has a higher liquidation threshold of 77%.<\/p>\n\n\n\n
The liquidation loan-to-value ratio determines how much a user can borrow against their collateral before their position becomes vulnerable to liquidation.<\/p>\n\n\n\n
Higher borrowing levels relative to collateral can increase risk if the value of the underlying tokenized stock falls.<\/p>\n\n\n\n
Morpho said geographic restrictions are handled through the token issuers and the tokenized assets themselves rather than directly by the lending market contracts.<\/p>\n\n\n\n
The products remain unavailable to U.S. persons and users in other restricted regions.<\/p>\n\n\n\n
Accurate pricing is particularly important when tokenized stocks are used as collateral.<\/p>\n\n\n\n
Morpho uses Chainlink infrastructure to determine the value of the supported assets and calculate borrowing limits and liquidation conditions.<\/p>\n\n\n\n
Chainlink previously introduced price feeds for Coinbase’s first tokenized stocks on Base.<\/p>\n\n\n\n
Morpho now uses its Chainlink V2 oracle adapter to price collateral across the new lending markets.<\/p>\n\n\n\n
These price feeds help the protocol determine whether borrower positions remain sufficiently collateralized as the value of the underlying stocks changes.<\/p>\n\n\n\n
No liquidation had been recorded in the Apple lending market at the time of the reported data.<\/p>\n\n\n\n
All current borrowing against the five Coinbase stock tokens is concentrated in Morpho’s variable-rate pools.<\/p>\n\n\n\n
Apple, Alphabet, and Nvidia markets were operating at around 90% utilization.<\/p>\n\n\n\n
Borrowers in those markets were paying approximately 5.62% interest, while lenders were earning around 5.06%.<\/p>\n\n\n\n
Meta’s lending pool had climbed to roughly 97% utilization.<\/p>\n\n\n\n
Higher utilization pushed borrowing costs considerably higher, with borrowers paying around 17.52% and lenders receiving approximately 16.98%.<\/p>\n\n\n\n
Rates in variable lending markets can change depending on supply and demand.<\/p>\n\n\n\n
When a large percentage of deposited USDC has already been borrowed, borrowing costs can rise to encourage additional deposits and reduce demand for loans.<\/p>\n\n\n\n
Morpho launched Midnight on Base as a fixed-rate and fixed-term lending system.<\/p>\n\n\n\n
The platform gives borrowers and lenders an alternative to constantly changing variable interest rates by allowing loan terms to be established for specific periods.<\/p>\n\n\n\n
For each of the five supported Coinbase stock tokens, Midnight currently offers 19 USDC markets.<\/p>\n\n\n\n
That creates a total of 95 fixed-rate markets.<\/p>\n\n\n\n
Despite the availability of these products, none of them currently has outstanding borrowing.<\/p>\n\n\n\n
As a result, the entire $54,652 in stock-backed borrowing remains concentrated in Morpho’s variable-rate lending markets.<\/p>\n\n\n\n
Although interest in tokenized stocks is growing, the amount currently being used as DeFi collateral remains modest.<\/p>\n\n\n\n
Around $11.4 million worth of the five supported Coinbase stock tokens is estimated to be outstanding on Base.<\/p>\n\n\n\n
The roughly $104,401 deposited into Morpho represents less than 1% of that supply.<\/p>\n\n\n\n
Trading activity, however, has expanded more quickly.<\/p>\n\n\n\n
Token Terminal data showed roughly $730.9 million in decentralized exchange volume for Base tokenized stocks during the 30-day period ending Sept. 12.<\/p>\n\n\n\n
Daily trading volume also reached a record of around $100 million.<\/p>\n\n\n\n
Aerodrome accounted for the largest share of the activity, processing more than $557 million during the measured period, while Uniswap v4 handled approximately $139 million.<\/p>\n\n\n\n
Morpho’s new lending markets highlight how tokenized traditional assets are becoming increasingly integrated with decentralized finance.<\/p>\n\n\n\n
Instead of simply holding or trading tokenized stocks, users can now potentially use them as productive collateral for borrowing.<\/p>\n\n\n\n
That creates new opportunities for capital efficiency but also introduces additional risks, including liquidation, changing interest rates, smart-contract exposure, and volatility in the underlying equities.<\/p>\n\n\n\n
Morpho currently holds billions of dollars in deposits across multiple blockchain networks, including a significant amount on Base.<\/p>\n\n\n\n
Other lending platforms on Base, including Aave and Euler, also support borrowing against certain Coinbase tokenized stocks for eligible users.<\/p>\n\n\n\n
The development shows how the line between traditional equities and decentralized finance continues to narrow as tokenized securities gain more utility across blockchain-based financial applications.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Morpho has expanded its lending services on Base by opening USDC borrowing markets for five Coinbase tokenized stocks. The supported assets include tokenized versions of Apple, Alphabet, Nvidia, Meta Platforms, and SpaceX. Users can deposit these stock tokens as collateral and borrow USDC without having to sell their positions. So far, around $104,401 worth of…<\/p>\n","protected":false},"author":3,"featured_media":16700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[166,2148,109],"class_list":["post-16699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-coinbase","tag-morpho","tag-tokenization"],"yoast_head":"\n