Apollo Credit Fund Makes DeFi Debut with Tokenized Structure and Levered-Yield Strategy from Securitize and Gauntlet.

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

Securitize, in partnership with Gauntlet, has officially launched a tokenized version of Apollo’s Diversified Credit Fund, combining the worlds of traditional finance and decentralized finance (DeFi) with a strategy that focuses on leveraged yield generation.

This tokenized offering, aimed at providing access to real-world credit assets, will leverage Apollo’s $1 billion credit fund, with the goal of providing investors with higher returns by tapping into DeFi yield farming strategies. The fund will employ a strategy using Compound Blue, powered by Morpho, allowing for the leverage of positions and optimization of returns within the DeFi ecosystem.

The tokenized fund will initially operate on the Polygon network, with plans to expand to other blockchain platforms in the future. The fund’s underlying token, ACRED, will serve as collateral to borrow USDC, which is then reinvested to increase exposure and potential returns. Gauntlet’s automated risk management system ensures that exposure is continuously monitored and adjusted in real time, protecting against market volatility.

Reid Simon from Securitize shared his excitement about the project, stating, “By tokenizing Apollo’s credit fund, we’re enabling DeFi-native strategies for institutional-grade assets, allowing traditional investors to take part in blockchain-based financial growth.”

The move further strengthens the integration of real-world assets (RWAs) into DeFi. Token holders will utilize Securitize’s proprietary sToken technology, which ensures that all investments remain compliant with regulations, while providing access to DeFi liquidity pools and opportunities.

The launch of the tokenized Apollo Credit Fund marks a significant milestone in bringing sophisticated financial products to DeFi, signaling a potential shift toward more institutional participation in the blockchain space. With enhanced transparency and a focus on leveraging blockchain’s power for traditional credit exposure, Securitize and Gauntlet are leading the way in this emerging frontier.