CryptoSlate
Tokenized US Treasury funds now hold roughly $16 billion in distributed value across issuers that include most of the largest names in traditional asset management, but most of those assets are economically idle. The harder question is what happens to a tokenized fund after issuance, and a growing set of DeFi markets are now answering it by putting these assets to work as collateral. The argument, made by Sentora's Vincent Maliepaard, is that tokenization's next phase will be measured by utility rather than by how many dollars exist onchain.
Why it matters
A tokenized fund that is held, occasionally transferred, and eventually redeemed is a faster distribution channel; a tokenized fund used as collateral inside an onchain lending market is financial infrastructure. The economic difference is significant: redeeming forfeits the position to access cash, while depositing the same token as collateral lets the investor keep the credit exposure and its yield while borrowing stablecoins against it.
DeFi liquidates in minutes, though, while traditional credit settles in days, which means collateral use demands different design around the token rather than inside it. The standard for a token built to back loans, with parameters such as loan-to-value limits sized against liquidation timing and historical NAV, is materially higher than the standard for a token built purely for distribution.
Market impact
The shift is already visible in working examples. mWIN, launched in August 2026 by Midas with Wellington Management running the underlying credit strategy and Northern Trust holding the assets, currently yields around 6.9% on investment-grade CLOs and asset-backed credit and can be minted and redeemed on a T+1 basis. Sentora curates a Morpho market where mWIN backs loans denominated in PayPal's PYUSD, with loan-to-value parameters sized against a dossier of historical NAV and stress events.
Aave launched Horizon in August 2025 specifically to let institutions borrow stablecoins against tokenized assets, and it now holds over $250 million in TVL. Figure PRIME's growth on Morpho surpassed $200 million this year.
Frequently asked questions
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What is mWIN and who issues it?
mWIN is a tokenized credit product launched in August 2026 by Midas, with Wellington Management running the underlying credit strategy and Northern Trust holding the assets. It yields around 6.9% on investment-grade CLOs and asset-backed credit.
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How large is the tokenized US Treasury fund market today?
Tokenized US Treasury funds hold roughly $16 billion in distributed value, with issuers including most of the largest names in traditional asset management. Most of those assets sit idle rather than being used as collateral.
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What is Aave Horizon?
Aave Horizon launched in August 2025 specifically to let institutions borrow stablecoins against tokenized assets. It currently holds over $250 million in TVL.
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How does Figure PRIME fit into this picture?
Figure PRIME's growth on Morpho this year surpassed $200 million. It is one of several working examples of tokenized assets being used as collateral inside onchain lending markets.
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Why is collateral use harder than issuance for tokenized funds?
DeFi liquidates in minutes while traditional credit settles in days, so a token built to back loans needs design work around parameters like loan-to-value limits and stress-event modeling. An asset built purely for distribution faces a lower bar.
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