Robinhood has officially launched its first on-chain lending product, Robinhood Earn, integrating several leading DeFi protocols directly into its app for nearly 28 million funded customers. The move, which began rolling out on July 1, enables eligible US users to earn an estimated 7% APY on the $USDG stablecoin by depositing into a Morpho vault curated by Steakhouse Financial. The yield is generated from on-chain borrowers who post collateral from partner protocols, with interest flowing back to users.
The integration marks a massive distribution milestone for the DeFi protocols involved. Morpho serves as the core credit network, placing Robinhood's entire user base atop its infrastructure. Ethena, Spark, and Maple supply the borrowing side, with Ethena seeding around $50 million into the Steakhouse $USDG vault to kickstart liquidity. Morpho held over $7 billion in total value locked across chains and recently closed a $175 million funding round at a $2 billion valuation.
Transactions settle on Robinhood Chain, a new permissionless Ethereum Layer 2 built on the Arbitrum stack that launched its public mainnet on July 1. Within a week, the chain's total value locked surged to $106 million, of which roughly $90 million sits in Morpho. In another show of rapid adoption, Robinhood Chain processed $250 million in Uniswap volume during its first week, signaling strong demand for integrated Layer 2 solutions within mainstream trading platforms.
Robinhood Earn operates with self-custody via RHNC and Privy, ensuring the company never holds user keys or funds. While the product includes insurance from Lloyd’s of London against cyber attacks and smart contract exploits, it does not cover market losses, yield compression, or a USDG depeg, and is not FDIC- or SIPC-protected. The yield rate is variable and could fall below 7% if borrowing demand cools.
