Neuberger's Tokenized High-Yield Fund Becomes Loopscale Collateral
Securitize has launched its Neuberger Securitize High Income Tokenized Fund (HINC) as collateral on the Loopscale lending protocol, marking a shift from Treasury-backed assets to sub-investment-grade corporate credit. HINC, which launched in August 2024 on Avalanche, Ethereum, Solana, and Sui, allows accredited investors to borrow $USDG stablecoins against their fund shares. This integration is significant because it introduces assets with credit spread and rating migration risks into an onchain lending environment previously dominated by low-volatility government paper. The fund, sub-advised by Neuberger Berman, includes high-yield bonds and CLO tranches, requiring sophisticated oracle infrastructure provided by RedStone to manage daily NAV updates. While Securitize is also pursuing Aave integration, the Loopscale deployment serves as a live test for managing complex, allowlisted collateral that lacks the intraday liquidity of crypto-native assets. The move highlights the industry's push to expand DeFi collateral beyond stablecoins and Treasuries, aiming to capture a portion of the projected $2.7 trillion tokenized asset market by 2030. However, the protocol must navigate significant challenges, including the practical liquidity of the underlying credit assets and the complexities of liquidating restricted, allowlisted positions during market stress.
