Securitize’s HINC token accepted as collateral on Loopscale, bringing junk bonds to DeFi lending

Securitize just made it possible for holders of its tokenized high-yield credit fund to borrow against their positions on Solana. The Neuberger Securitize High Income Tokenized Fund, known as HINC, is now accepted as collateral on Loopscale, a lending protocol that lets investors take out loans without liquidating their underlying assets.

What HINC actually is

HINC launched on August 18, 2026, as a high-yield credit vehicle sub-advised by Neuberger Berman, a firm that oversees more than $230 billion in fixed-income assets alone. The broader firm manages somewhere between $567 billion and $613 billion in total assets.

The fund primarily invests in high-yield corporate bonds, with allocations spanning CLO tranches (up to 30%), bank loans, and other yield-generating fixed-income instruments.

There’s a $100,000 minimum investment, and only accredited investors need apply. The management fee sits at 0.50%. Daily net asset value updates are delivered through RedStone oracles, which push pricing data on-chain so that both the protocol and its users can see what their collateral is actually worth in near-real time.

By September 1, 2026, eligible HINC holders gained the ability to post their fund shares as collateral on Loopscale and borrow USDG, a stablecoin, at fixed rates. No need to redeem the underlying investment. No need to exit the position. Just pledge, borrow, and keep your high-yield exposure intact.

Why Loopscale matters for this kind of asset

Loopscale isn’t your typical automated market maker lending pool. The Solana-based protocol uses an order-book model to price collateral assets individually, which becomes particularly important when the collateral in question isn’t a stablecoin or blue-chip token but a basket of junk bonds that fluctuates with credit spreads.

The protocol currently has total value locked estimated between $91 million and $127 million, with active loans worth between $48 million and $56 million.

Securitize’s expanding Loopscale footprint

HINC is actually the third Securitize product to be integrated on Loopscale. It follows ACRED, the Apollo tokenized credit fund, and SECZ, Securitize’s NYSE-listed tokenized equity.

The fund issues tokenized interests as permissioned tokens held in verified wallets. That’s a deliberate design choice balancing the openness of blockchain rails with the compliance requirements that come with offering securities to accredited investors.

What this means for institutional DeFi

The ability to borrow against tokenized high-yield credit without selling the underlying position solves a real problem for institutional investors. In traditional markets, accessing liquidity from a high-yield bond portfolio typically means either selling into what can be a thin and illiquid market or negotiating a repo agreement with a prime broker.

On Loopscale, the process is reduced to a collateral deposit and a fixed-rate loan. The investor keeps their yield exposure. The protocol gets collateral that generates real economic returns. And the pricing is updated daily through on-chain oracles rather than through a counterparty’s internal models.

There’s also the question of redemption mechanics. If a borrower’s HINC collateral drops in value and they face a margin call, the liquidation process for tokenized fund shares is fundamentally different from liquidating a liquid token like SOL. Fund shares may have redemption gates, settlement delays, or other structural features that complicate rapid unwinding.