Securitize's tokenized high-yield fund HINC is now accepted as collateral on Loopscale, with pricing provided by Redstone and borrowing available against USDG on Solana.
DeFi & Yields ·
Securitize's tokenized high-yield credit fund HINC is now usable as collateral on Loopscale, the Solana lending protocol, with pricing supplied by Redstone and borrowing available in the USDG stablecoin. Eligible investors holding HINC shares can now obtain loans without liquidating their positions. The fund, which launched in August across multiple blockchains, holds predominantly high-yield corporate bonds alongside collateralized loan obligations and other fixed-income instruments, with the CLO allocation ranging from zero to 30% of the portfolio.
This integration marks a shift in collateral composition for Solana's lending markets. Until now, Loopscale's backing has consisted almost entirely of Treasuries, government money-market instruments, and investment-grade debt. Sub-investment-grade corporate credit introduces valuation complexity: the fund's net asset value fluctuates daily with credit spreads and rating changes, meaning Loopscale must reliably track an asset whose price movement depends on factors external to blockchain markets. RedStone's oracle publishes the administrator's daily NAV in signed, timestamped form to ensure protocol verification of the fund's value.
HINC is the third Securitize product activated as Loopscale collateral, following Apollo's ACRED credit fund and Securitize's own NYSE-listed stock. Loopscale holds $91.3 million in total value locked with $55.9 million in active loans as of reporting, ranking 27th among lending protocols. The key open question remains how credit-spread volatility and migration risk will behave within an onchain borrowing environment designed primarily around shorter-duration, lower-default assets.