Robinhood Crypto Launches Earn Product Using Morpho's Lending Infrastructure

• Robinhood Crypto launched Crypto Earn using Morpho’s lending infrastructure on its new Layer 2.
• Standard Chartered initiated Morpho coverage as institutional adoption continued to expand.
• Morpho manages over $11B in deposits after raising more than $250M to support partnerships.

Morpho moved further into the institutional spotlight after two separate developments placed the decentralized lending protocol at the center of new financial products and research coverage. On the same day, Standard Chartered initiated coverage of Morpho, while Robinhood Crypto introduced a Crypto Earn service that uses the protocol’s lending infrastructure.

The announcements came as Robinhood launched the mainnet of its new Layer 2 network, with Morpho’s technology serving as the foundation for the yield-generating product. Following the updates, the MORPHO token gained more than 12% during the trading session.

Robinhood’s new Crypto Earn product allows approved users to earn yield by holding USDG within the application. According to the announced structure, deposited funds are automatically allocated to a Morpho Vault operating on Robinhood Chain, the company’s Ethereum Layer 2 network built using Arbitrum technology.

The vault is curated by Steakhouse Financial, which is responsible for selecting lending markets based on risk and return considerations. Funds deposited into the vault are then made available to institutional borrowers who use protocols such as Spark, Ethena, and Maple as collateral. The interest paid by those borrowers is distributed as yield to participating users.

Robinhood Crypto’s Director of Partnerships, Gaëtan Thabot, said the integration provides eligible users with a simplified way to access yield through Morpho’s open credit network.

The Robinhood integration adds another organization using Morpho’s lending infrastructure. According to the announced details, Coinbase, Bitwise Asset Management, Société Générale, and MetaMask have also deployed products built on the protocol.

Morpho co-founder Paul Frambot said that decentralized finance infrastructure enables companies to build financial products using open, transparent networks rather than proprietary lending systems.

The latest integration follows Morpho’s recent $175 million funding round, which was co-led by Paradigm, a16z crypto, and Ribbit, with participation from Apollo Funds, Circle Ventures, and VanEck. The financing increased the protocol’s total capital raised to more than $250 million.

Morpho currently manages more than $11 billion in deposits globally. The company previously stated that the new funding would be used to accelerate partnerships with established brands, and the Robinhood Crypto integration represents one of the latest collaborations announced under that strategy.

Related:Bitwise Launches Non-Custodial Vault on Morpho Targeting 6% APY Through DeFi Lending