Securitize and Gauntlet Introduce Tokenized Apollo Credit Fund with Leveraged Yield Strategy in DeFi
DUBAI, UAE — Tokenization firm Securitize has teamed up with decentralized finance (DeFi) expert Gauntlet to bring a tokenized version of Apollo’s credit fund into the DeFi space, marking a significant move toward integrating real-world assets (RWAs) into the cryptocurrency ecosystem.
The two companies are unveiling the “Levered RWA Strategy” on Wednesday, which revolves around the Apollo Diversified Credit Securitize Fund (ACRED). This tokenized feeder fund, launched in January, invests in Apollo’s $1 billion Diversified Credit Fund. The strategy will utilize Compound Blue, a lending protocol powered by Morpho.
Initially available on the Polygon network, the offering will eventually expand to the Ethereum mainnet and other blockchains following a pilot phase.
Reid Simon, head of DeFi and credit solutions at Securitize, explained the goal behind the initiative: “The idea behind the product is to make our tokenized securities competitive with stablecoin strategies and integrate them seamlessly into DeFi yield strategies,” he said in an interview with CoinDesk.
Tokenized Assets Meet DeFi Strategies
This launch comes at a time when tokenized real-world assets like funds, bonds, and credit products are gaining attention in the traditional finance sector. Major firms such as BlackRock, HSBC, and Franklin Templeton are exploring blockchain-based solutions for asset issuance and settlement. Tokenized U.S. Treasuries alone have already amassed over $6 billion, according to data from RWA.xyz.
However, the next challenge is enabling these tokenized assets to be used across DeFi applications, such as collateral for loans, margin trading, or creating investment strategies that are not possible through traditional financial systems.
The Levered RWA Strategy uses a DeFi-native technique called “looping,” in which ACRED tokens are deposited into a vault and used as collateral to borrow USDC. This borrowed USDC is then used to purchase more ACRED tokens, with the process repeating to increase yield. The strategy dynamically adjusts exposure based on real-time borrowing and lending rates, amplifying returns.
The vault is fully automated using smart contracts, minimizing the need for manual oversight. Gauntlet’s risk engine continuously monitors leverage ratios and can unwind positions in volatile market conditions, providing a layer of protection for investors.
Paul Frambot, CEO and co-founder of Morpho, praised the initiative: “This use case uniquely demonstrates how DeFi enables investors in funds like ACRED to access financial composability that is simply not possible on traditional rails. It’s a breakthrough for institutional-grade DeFi.”
Compliance and Investor Protection in DeFi
This offering also marks one of the first implementations of Securitize’s new sToken tool. The sToken allows accredited token holders to remain compliant and ensure investor protections while interacting with decentralized networks. In this case, ACRED investors will mint sACRED tokens, which can be used for broader DeFi strategies without breaching regulatory standards.
Carlos Domingo, CEO of Securitize, emphasized the significance of the initiative: “This is a prime example of the institutional-grade DeFi we’ve been striving to create. We’re making tokenized securities not just accessible, but appealing to crypto-native investors looking for strategies that deliver superior returns compared to traditional methods.”
