Mu Digital is bringing Asian credit yields onchain through an integration with Pendle Finance, giving DeFi users access to tokenized exposure tied to sovereign bonds, corporate debt, and private credit across Asia.

The Hong Kong based tokenization platform says the integration marks the first instance of Asian credit yields being traded as fixed income instruments onchain. Asia’s credit market is estimated at roughly $20 trillion, but most of it has remained inaccessible to DeFi users.

Mu Digital’s core products are AZND and loAZND. AZND is a synthetic stable yield token backed by diversified Asian credit instruments, while loAZND is the locked version used inside Pendle’s yield trading system.

Pendle splits yield bearing assets into Principal Tokens and Yield Tokens. Principal Tokens let users lock in fixed rates, while Yield Tokens allow users to speculate on future yield. That structure lets loAZND trade more like a fixed income product inside DeFi.

The active loAZND pool on Pendle holds about $546,000 in total value locked, with a base APY of roughly 6.75% and a fixed PT APY of 8.19%. The pool is set to mature on July 2.

Mu Digital’s senior AZND products target yields in the 6% to 10% range, while junior products such as muBOND can reach up to 15%. The higher yield comes with higher risk, reflecting the basic logic of structured credit.

The company raised $1.5 million in pre seed funding, with investors including UOB Venture Management, CMS Holdings, Signum Capital, Cointelegraph Accelerator, and Echo. UOB Venture Management is the venture arm of United Overseas Bank, giving the project backing from a major Southeast Asian financial institution.

To build early liquidity, Mu Digital launched an Infinite Ways to Earn campaign in January, aimed at attracting deposits into its Pendle pools and expanding access to Asian credit products onchain.

The integration adds another layer to DeFi’s real world asset push. Treasury backed products have dominated tokenized yield so far, but Mu Digital is betting that Asian credit can become a new source of onchain fixed income demand.