A tokenized version of Apollo’s private credit fund is set to make a splash on Solana’s decentralized finance (DeFi) ecosystem in June 2025, marking a significant stride in the integration of traditional financial instruments within the blockchain space. The launch, powered by Kamino Finance and backed by Securitize and Steakhouse Financial, aims to position the Apollo Diversified Credit Securitize Fund (ACRED) token as a pioneering asset for on-chain borrowing and leverage on Solana.
Bridging Traditional Finance and DeFi
Securitize’s move to tokenize the Apollo credit fund reflects the burgeoning trend of real-world asset (RWA) tokenization, where conventional financial instruments like funds and bonds are transitioned to blockchain platforms to enhance investment accessibility and transparency. This initiative notably positions ACRED as the first token on Solana to utilize Securitize’s sToken standard, hinting at a broader adoption of similar assets in the future. As explored in Tokenized Apollo Credit Fund Makes DeFi Debut With Levered-Yield Strategy by Securitize, Gauntlet, this strategy is part of a wider trend of leveraging traditional assets in DeFi to enhance yield opportunities.
“The value of tokenization really comes into play when these assets are integrated into DeFi, and new products and strategies are developed around them,” noted Reid Simon, head of DeFi and credit solutions at Securitize. The token, launched back in January, offers investors exposure to Apollo’s private credit strategies under a regulated token framework, signaling a new era of investment possibilities on the blockchain.
Solana’s DeFi Ecosystem: A New Frontier
While Solana’s DeFi market has been growing at a rapid pace, RWAs have yet to gain significant traction on the platform. Currently, Solana hosts $330 million worth of RWAs, a modest figure compared to its $9 billion DeFi market size and Ethereum’s $7 billion RWA market. However, the entrance of major tokenization players like Securitize could potentially turn the tide. This follows a pattern of institutional adoption, which we detailed in MultiBank, MAG, Mavryk ink world’s largest $3B RWA tokenization deal.
“Solana has experienced explosive consumer growth in recent years, but below the surface, we are seeing enormous interest from institutions and asset issuers,” remarked Marius Ciubotariu, co-founder of Kamino. “Finally, the industry is in a position to not only bring these assets on-chain but to provide genuine use cases.”
With Kamino’s Multiply product, users can leverage ACRED for yield strategies, automatically increasing exposure while managing collateral and borrowing levels through Solana-native smart contracts. This innovative approach mirrors the strategies Gauntlet introduced on Polygon last month, further diversifying DeFi offerings on Solana.
The Road Ahead
Despite the promising developments, questions remain about whether Solana can catch up with Ethereum’s RWA market dominance. The platform’s fast-growing ecosystem and the integration of traditional financial assets could serve as a catalyst for further DeFi expansion, but it remains to be seen if it can consistently attract institutional interest and achieve substantial market penetration.
“Building on off-chain credit assets in a composable way is the sort of long-term investment we believe can help catalyze further growth of DeFi in Solana,” said adcv, co-founder of Steakhouse Financial. As the ACRED token prepares for its Solana debut, the eyes of both traditional finance and crypto enthusiasts will be keenly watching—wondering if this could be the moment that real-world assets truly take off in the DeFi world.
Source
This article is based on: Securitize’s Tokenized Credit Fund Set for Solana DeFi Debut as RWA Trend Expands
Further Reading
Deepen your understanding with these related articles:
- Tether Finalizes Buying 70% of Adecoagro Stake, Securing Tokenization Ambition
- Restaking can make DeFi more secure for institutional traders
- Franklin Templeton Backs Bitcoin DeFi Push, Citing ‘New Utility’ for Investors
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
