Midas unlocks hundreds of millions of liquidity on Morpho to scale tokenized RWA access
$150M
$190M
“Enabling broader access to RWAs requires secure onchain liquidity and predictable infrastructure. Morpho provides both: capital-efficient borrowing markets and infrastructure to support redemption flows based on verified collateral valuations.”Dennis Dinkelmeyer, Co-founder & CEO, Midas
The opportunity
Midas issues institutional-grade, tokenized investment products as ERC-20 tokens, bridging traditional assets with DeFi composability.
As their product suite expanded, they needed a single venue where tokens could:
- Plug into deep liquidity
- Be used as collateral to unlock leverage and loops
- Operate with verifiable pricing and predictable redemptions that are institutional-grade.
This need became particularly clear with mF-ONE, Midas’s tokenized version of Fasanara‘s flagship Private Credit strategy.
To make mF-ONE truly onchain and institutional, Midas required: capital-efficient leverage for whitelisted LPs, instant redemptions, and a proof-of-reserve pricing flow verified independently.
The solution
Morpho’s lending network provides billions in stablecoin liquidity through Vaults curated by asset managers like Steakhouse, Hyperithm, MEV Capital & Gauntlet. This allows mTokens to be used as collateral for borrowing and leveraging exposure without moving the borrowing rates.
1) Tokenized certificates
Midas’s strategy tokenizes underlying Morpho Vault strategies from curators such as MEV Capital, Hyperithm, Edge Capital, and Re7.
These vault tokens can be collateralized on Morpho, so holders can either borrow stablecoin liquidity or amplify their exposure in the underlying vaults.
2) Tokenized certificate tracking Fasanara’s Private Credit strategy: mF-ONE
Fasanara’s F-ONE is one of the fund’s flagship products.
Its tokenized version, mF-ONE by Midas, can be collateralized on Morpho to enable an onchain Private Credit Repo strategy. Midas’s whitelisted LPs can borrow USDC against their mF-ONE or use borrowed USDC to purchase more mF-ONE, increasing their exposure.
Midas built an innovative solution to amplify onchain RWA yield by leveraging Morpho’s universal lending network:
- Deep liquidity. By tapping into Morpho’s $2B+ USDC liquidity, Midas (along with Steakhouse Financial) designed a repo strategy that scales without materially affecting borrowing rates or compressing margins.
- Midas structured an approach that allows whitelisted LPs to use mF-ONE certificates as collateral within Morpho, thereby accessing stablecoin liquidity. Depending on prevailing market rates, this setup may enable increased exposure to the underlying strategy. For example, with an 84.5% LTV and typical borrow/lend spreads, simulated yields may exceed base levels.
- Instant liquidity for redemptions. Midas specifically designed the strategy for Morpho’s noncustodial vaults, enabling LPs to unwind positions immediately without redemption delays, crucial for institutional capital management.
Custom pricing infrastructure. Midas implemented a verifiable price oracle using Morpho’s flexible oracle framework: (1) Fasanara produces NAV (Net Asset Value), (2) Midas submits pricing to eOracle for independent verification and publication, (3) Steakhouse applies market-level discounts to optimize liquidation parameters and maintain competitive LTV for borrowing.
The results
Tokenized certificate traction
mTokens on Morpho have grown from $10M to $150M (excluding RWA tokens) in TVL since August 2025, indicating that once tokenized certificates become usable collateral, TVL compounds across markets.
Tokenized RWA adoption (mF-ONE)
From launch this summer, mF-ONE scaled from $0 to ~$190M AUM on Morpho, making it the leading RWA market on Morpho by total deposits.
As the Morpho grows, liquidity becomes deeper with sustainable lending demand — from various integrations with Coinbase, Gemini, Crypto.com, Ledger, and Société Générale — Midas will be able to source sustainable stablecoin liquidity and drive further demand for their tokenized assets.