One of the major trends of 2025 is the surge of tokenized real-world assets (RWAs). Morpho is positioning itself as a bridge between traditional finance and DeFi by onboarding short-duration bonds, bank stablecoins, and even tokenized equities into its isolated markets. This integration meets growing institutional demand to lend and borrow against tangible collateral while benefiting from on-chain transparency.

The RWA Alliance and the Nest infrastructure

In October 2025, Plume launched the Global RWA Alliance. Its modular Nest infrastructure was integrated with OKX Earn and Morpho to deliver cross-chain yield across diverse assets. The goal is to bring together issuers, brokers, and investors to standardize the issuance and lifecycle management of RWAs. By providing isolated markets and an order book, Morpho becomes the reference tool for capital allocation from bank stablecoins such as EURCV/USDCV to tokenized bonds like IB01.

The PYUSD Vault: a mainstream gateway to RWAs

Launched in February 2025, the PYUSD vault curated by Steakhouse Financial allows liquidity providers to earn yield by lending PYUSD against blue-chip collateral and tokenized T-bills. Morpho presented this product as the first mainstream stablecoin vault backed by real-world assets. It fits into a broader movement where stablecoins, supported by traditional companies like PayPal, rely on DeFi rails to offer yield and fast convertibility.

SG Forge and bank stablecoins

The integration of EURCV and USDCV stablecoins into Morpho was a significant milestone. For the first time, a bank enabled its clients to lend and borrow regulated stablecoins within a DeFi protocol. This initiative was hailed as a model for future tokenized bonds or securities: “bank-grade” liquidity combined with on-chain execution. Meanwhile, other issuers like WisdomTree and Centrifuge announced similar projects, signaling that the market is converging around standards.

Why Morpho is a natural ally for RWAs

Morpho’s isolated markets allow each asset to be parameterized according to its volatility, liquidity, and chosen oracle. A short-term T-bill will have a high LLTV, while a riskier asset will be configured more conservatively. Vault curators can thus create balanced baskets combining crypto and RWAs and publish their limits for each category. As RWAs scale, Morpho becomes a laboratory for testing risk pricing on instruments akin to traditional bonds. The RWA alliance accelerates this trajectory by providing a complete ecosystem from issuance to distribution.

Toward unified, programmable finance

Asset tokenization and the rise of bank stablecoins pave the way for programmable finance where the lines between DeFi and TradFi blur. Morpho serves as a bridge by offering a neutral, modular lending infrastructure. From interest-bearing stablecoin savings for the general public to treasury strategies for large enterprises, use cases are multiplying. The ambition: to build a new asset class that combines the safety of bonds with the flexibility of DeFi. The path is set now it’s time to walk it. @Morpho Labs 🦋 s #Morpho $MORPHO