Morpho Opens Lending Markets for Coinbase Tokenized Stocks

The integration allows holders of Coinbase-issued assets to access liquidity through either variable rate markets or Morpho’s Midnight fixed-rate layer. Since the markets debuted on September 7, borrowing activity remained modest until a mid-month surge, jumping from $503 to over $42,000 in just two hours on September 16. Current outstanding loans stand at $54,652, entirely concentrated within variable rate pools.

Steakhouse Financial oversees the parameters for these markets, including collateral requirements and liquidation thresholds. While Apple, Nvidia, Meta, and SpaceX tokens carry a 62.5% liquidation loan-to-value ratio, Alphabet is set at 77%. Despite the availability of 95 fixed-rate markets via the Midnight system, borrowers have exclusively favored variable rate models. Utilization rates vary significantly; while Apple, Alphabet, and Nvidia hover around 90% utilization, Meta has surpassed its target, driving borrowing costs for that specific asset to 17.52%.