Tokenized Apollo Credit Fund Enters DeFi Space with Levered-Yield Strategy, Powered by Securitize and Gauntlet.

Securitize and Gauntlet Launch Tokenized Apollo Credit Fund with Leveraged Yield Strategy in DeFi

Securitize and Gauntlet have launched a tokenized version of the Apollo Diversified Credit Fund, marking its debut in the DeFi space with a leveraged-yield strategy.

The new initiative is designed to offer a blockchain-based solution to traditional credit investing, utilizing a tokenized feeder fund that invests in Apollo’s $1 billion Diversified Credit Fund. This innovative product aims to provide investors with access to DeFi yield strategies while maintaining the stability of real-world assets (RWAs).

The strategy involves utilizing the Compound Blue lending protocol, powered by Morpho, to boost returns through a leveraged approach. Initially available on the Polygon network, the tokenized fund will expand to other blockchains after a pilot phase.

Securitize’s Reid Simon highlighted the goal behind the project: “We want to make tokenized securities not only competitive with stablecoins but fully integrated into DeFi strategies that deliver high yields.”

By leveraging “looping” techniques, the strategy allows ACRED tokens to be used as collateral for borrowing USDC, which is then reinvested into the fund. The process is automated through smart contracts, ensuring constant optimization of returns. Gauntlet’s risk management tools also provide safety measures by adjusting exposure and unwinding positions when market conditions are unfavorable.

This launch represents a significant milestone in bringing traditional finance and DeFi together, offering institutional-grade products in the blockchain space while maintaining regulatory compliance. Securitize’s sToken tool ensures that token holders stay within compliance while engaging with the decentralized financial ecosystem.

Carlos Domingo, CEO of Securitize, expressed excitement about the development: “This tokenized Apollo Credit Fund is a testament to the evolving landscape of institutional-grade DeFi, allowing crypto-native investors to engage in strategies that were once only possible through traditional financial systems.”