Securitize and Gauntlet Launch Tokenized Apollo Credit Fund with Leveraged Yield Strategy on Blockchain
Securitize, in collaboration with Gauntlet, has unveiled a tokenized version of the Apollo Diversified Credit Fund, ushering in a new era of decentralized finance (DeFi) with a strategy aimed at leveraging higher yields.
This innovative tokenized fund gives investors access to Apollo’s $1 billion credit fund, combining traditional finance with blockchain technology. The fund will operate on a passive strategy, utilizing the Compound Blue protocol powered by Morpho to enable leverage and enhance returns within the DeFi ecosystem.
The product is structured as a tokenized feeder fund, with the underlying token, ACRED, serving as collateral for borrowing USDC. This borrowed capital will then be reinvested, creating a compounding effect that boosts overall returns. The strategy is designed to be automated, with real-time risk management provided by Gauntlet’s technology, ensuring optimal exposure adjustments based on market conditions.
Launching initially on the Polygon network, the tokenized fund will eventually expand to additional blockchains. Securitize’s sToken technology will allow for regulatory compliance, ensuring that investors can engage with the decentralized finance ecosystem while adhering to established financial regulations.
“Tokenizing Apollo’s credit fund represents a critical step in bridging traditional finance and DeFi,” said Reid Simon of Securitize. “By enabling the use of blockchain for credit assets, we’re opening up new avenues for institutional investors to participate in high-yield opportunities.”
This tokenization initiative signifies the growing intersection of traditional finance and DeFi, as real-world assets (RWAs) continue to be digitized for broader DeFi integration. The launch of the Apollo Credit Fund is a major leap forward, with the potential to transform how investors engage with both traditional and decentralized financial markets.
