You can grind the bottom off the blades to make them fit, I skim 3/4" blades so they fit my Rapid holder, although I have not done as much as an 1/8".
If you have a small lathe think about the blades thickness too, you may be better selling them and buying smaller blades.
It is also possible to grind the top off the blade to make it fit.
That automatically narrows the kerf and thus requires less power to drive it into the material.
That could be a good strategy if you want to use a big blade on a small machine.
Grinding the bottom has the advantage that you can leave the part that projects from the holder untouched (radius the transition), stiffening it up and allowing greater usable stick out.
In principle, that was the idea used on the Greenwood Tools blade aimed at Myford users - a deep blade that could be held in a small toolholder keeping the tip at centre height.