Borrowing without redeeming
On Loopscale, users can borrow against a range of digital assets. Adding the Securitize fund means investors can now use a tokenized credit product as collateral. The process doesn't require them to give up their position in the fund. Instead, they pledge the shares and receive USDG loans, with the fund serving as security.
The ability to borrow without redeeming is a key feature. It lets investors keep their stake in the high-yield fund while tapping into cash. That could be useful for managing cash flow or rebalancing a portfolio without triggering a sale of the underlying credit.
Sub-investment-grade credit onchain
The fund holds sub-investment-grade corporate credit, a category that typically carries higher risk and higher yields. By making it collateral on Loopscale, that credit now sits inside a decentralized lending market. It's a new use case for tokenized real-world assets, which have been expanding beyond simple token issuance.
The move also highlights how tokenization can make traditionally illiquid assets more useful. Investors in the fund can now get liquidity without exiting their position, a flexibility that wasn't available before. The integration is live, and eligible investors can borrow against their shares on Loop
