Tokenized auto loans debut on Solana as AUTO goes live
DeFi & Yields ·
A new token representing pools of U.S. auto loans has begun trading on Solana, opening consumer credit exposure to onchain lending markets for the first time.
AUTO launched with a reported 7.92 percent APY, backed by loans originated through Agora and routed onchain via Figure Forge, according to a post detailing the launch. Holders receive AUTO by staking wYLDS on Hastra, and the token's yield is designed to track the actual performance of Figure's Democratized Prime Auto lending book rather than a fixed rate. At launch, total value locked stood at 4.09 million dollars across 83 active stakers, with the underlying pool comprising 9,348 loans.
The loan pool's composition offers a window into the credit quality being tokenized: the average loan size is 20,877 dollars, the average borrower credit score is 580.96, and the average loan term runs 68.57 months. That profile places AUTO in near-prime territory, a segment of consumer lending that has not previously had a direct onchain analog.
Beyond passive holding, AUTO is now integrated into Kamino, where looping and lending strategies let users layer leverage on top of their position to amplify yield while retaining exposure to the underlying auto loans. Vault curation for the product is handled by SentoraHQ, with RockawayX providing market making, and Chainlink Data Streams supplying the pricing infrastructure that underpins the token's onchain valuation.
The launch is being framed as an expansion of the real-world-asset category beyond its earlier focus on a single tokenized product, moving toward what backers describe as a broader marketplace for onchain yield built on diverse credit types. Consumer lending is described as the largest credit market in the United States, and its arrival onchain marks a shift from the government-debt-heavy composition that has dominated tokenized asset offerings to date.
What remains unclear is how the yield will behave as the underlying loan pool matures, how defaults or prepayments within a near-prime borrower base might affect returns, and whether the looping strategies on Kamino introduce added risk during periods of market stress. The scale of adoption beyond the initial 83 stakers, and whether additional platforms integrate AUTO alongside Kamino, are also open questions.