High-yield credit becomes onchain collateral

Tokenized credit has crossed from issuance into the capital-markets plumbing, and its newest collateral is a mark that can fall. Loopscale now lends against a fund that holds high-yield corporate bonds, making Securitize's Neuberger Securitize High Income Tokenized Fund (HINC) live as collateral so eligible investors can borrow USDG against their shares without redeeming the position. That puts sub-investment-grade corporate credit into an onchain lending market whose collateral has been almost entirely Treasuries, government money-market funds and investment-grade paper.

Until now, the safest collateral in DeFi was the asset that moved the least, a tokenized Treasury bill that marks to par, keeps duration short and behaves as collateral should. HINC is a different animal: it holds mostly high-yield corporate bonds, with the balance in CLO tranches, bank loans and other high-yielding fixed income, and its CLO sleeve can run anywhere from zero to 30% of the portfolio, so the fund's net asset value moves with credit spreads and rating migrations. Loopscale is underwriting a mark that can fall, on an asset only allowlisted wallets are permitted to hold.

The fund launched Aug. 18 on Avalanche, Ethereum, Solana and Sui with Neuberger Berman Investment Advisers as sub-adviser, a firm that managed $613 billion as of June 30. Shares carry a $100,000 minimum subscription and a 0.60% total expense ratio, and go only to accredited investors and qualified purchasers who clear Securitize's onboarding.

"Treasuries were a natural starting point for bringing traditional assets into DeFi, but they shouldn't be the endpoint," said Carlos Domingo, co-founder and CEO of Securitize. "HINC expands the opportunity into institutional credit." The point, as Loopscale's lending book shows, is utility: a tokenized fund that can be borrowed against is a tokenized fund with a job.

Loopscale is a small venue for this ambition, holding $91.3 million in total value locked and $55.9 million in active loans, up 7.1% over 30 days, and ranking 27th among lending protocols by DefiLlama. On Solana it sits an order of magnitude behind Kamino Lend at $1.25 billion and Jupiter Lend at $1.07 billion. The protocol's history includes a $5.8 million exploit in April 2025, two weeks after launch, which it recovered by agreeing a bounty with the attacker. Its lending markets are fixed-rate and fixed-term, with the borrower setting collateral, rate, loan-to-value and duration, and liquidations are partial, selling only enough of a position to bring the loan back to health.

HINC is the third Securitize product to reach Loopscale, after Apollo's tokenized credit fund ACRED, usable as collateral since late 2025 with USDG subscriptions added in January, and Securitize's own NYSE-listed stock SECZ, live as collateral on Aug. 20. The pattern is clear: the sponsors that brought tokenized funds to market are now asking lending protocols to accept them as credit support.

"HINC adds a fundamentally different type of collateral to Solana credit markets," said Mary Gooneratne, co-founder of Loopscale. "Supporting an actively managed high-yield strategy demonstrates how onchain lending can extend beyond crypto-native assets and short-duration instruments." The test arrives with Securitize's first public report since listing, which showed tokenized assets at a record even as tokenization fees shrink, and with Neuberger Berman's arrival on Securitize's rails, which raised the question of who collects when the wrapper is a commodity. HINC's collateral status is one answer.

RedStone prices HINC on Solana, Ethereum and Avalanche using its Trusted Single Source Oracle standard, taking the administrator's daily NAV and publishing it onchain. That makes the oracle the point where DeFi's valuation of a credit fund begins and a stale mark would hurt.

The gap between RWA issuance and usable collateral remains the industry's clearest bottleneck, and HINC's arrival on Loopscale is evidence. The next test is whether lenders can underwrite a mark that moves with credit spreads, in fixed-term loans, with partial liquidations.