Morpho has launched a borrowing facility on the Base network allowing holders of five Coinbase-issued stock tokens to pledge them as collateral for USDC loans. This represents one of the first live DeFi implementations of tokenized equity as loan collateral, establishing real on-chain LTV ratios and liquidation mechanics for these instruments.
For Armada's crypto repo desk, Morpho's framework provides an observable market reference point for haircut and liquidation behavior on tokenized stocks, which may become relevant collateral following the SEC's NMS tokenization exemption. Armada should review Morpho's published risk parameters alongside Aave benchmarks when developing internal collateral policy for tokenized equities, and confirm that any such assets custodied via Fireblocks fall within existing MSA scope.