Kamino launches AUTO, a real-world asset token backed by U.S. near-prime auto loan yields on Solana, targeting a $1.68 trillion market.
Tech & Launches ·
Kamino, a DeFi protocol on Solana, has introduced AUTO, a real-world asset token grounded in yields from near-prime U.S. auto loans. The token aims to tokenize a $1.68 trillion market segment by bringing auto credit on-chain through partnerships with Agora Data for loan origination, Figure Forge for infrastructure, and HastraFi for issuance. The protocol describes AUTO as the first permissionless RWA of its kind, leveraging Chainlink oracles for price feeds.
The near-prime auto loan market targets borrowers whose credit profiles fall below traditional prime thresholds, typically commanding higher returns alongside increased default risk. Kamino's model allows token holders to gain exposure to these yields without direct lending involvement. The launch occurred on July 29, 2026, positioning the product as a bridge between traditional auto finance and decentralized infrastructure.
The mechanics of how AUTO manages borrower defaults, maintains collateralization ratios, or handles potential loan performance deterioration remain unclear from available materials. Similarly, specifics on fee structures, redemption mechanics, and Kamino's risk management framework have not been detailed in the announcement.