Aave said on X that Securitize has submitted an ARFC proposal on the Aave governance forum to onboard tokenized shares of the Neuberger Securitize High Income Tokenized Fund, or HINC, to Aave Horizon as collateral. If the proposal moves forward, users would be able to borrow USDC, GHO, and RLUSD against the asset. The proposal describes HINC as the first below-investment-grade credit collateral considered for Horizon and argues that its expected yield is meaningfully higher than stablecoin borrowing rates, which could support two ongoing use cases: arbitrage trades and balance sheet financing. At the same time, the filing lays out several risks. It says the fund has no actual operating history and carries liquidity mismatch and credit risk. For pricing, the design would use a Chainlink net asset value oracle with a capped growth rate. For liquidations, the proposal calls for a window-based process rather than instant liquidation. HINC’s investment adviser is Securitize Capital LLC, with Neuberger Berman Investment Advisers serving as sub-adviser. The fund mainly invests in fixed-income assets including high-yield corporate debt and CLO tranches, and its shares are issued on Ethereum as permissioned DSTokens using the same issuance structure as VBILL, the VanEck Treasury fund already onboarded to Horizon. Securitize also disclosed a direct commercial interest through its roles in the product.
Aave said on X that Securitize has posted an ARFC proposal on the Aave governance forum to add tokenized shares of the Neuberger Securitize High Income Tokenized Fund, or HINC, to Aave Horizon as collateral. If adopted, the asset would let users borrow USDC, GHO, and RLUSD.
Proposal positions HINC for two recurring borrowing uses
The proposal says HINC would become the first below-investment-grade credit collateral on Horizon. It argues that the fund’s expected yield is materially above stablecoin borrowing rates, creating room for two persistent types of demand: arbitrage trading and balance sheet financing.
Pricing design and liquidation framework
The filing also sets out the main risks. It says the fund has no actual operating history and faces both liquidity mismatch risk and credit risk.
For pricing, the plan is to use a Chainlink net asset value oracle with a growth-rate cap. For liquidations, the proposal does not use instant liquidation. Instead, it calls for a window-based liquidation process.
Advisers, holdings, and issuance structure
HINC is advised by Securitize Capital LLC, while Neuberger Berman Investment Advisers serves as sub-adviser. The fund mainly invests in fixed-income assets, including high-yield corporate bonds and CLO tranches.
Its shares are issued on Ethereum as permissioned DSTokens. The issuance structure is the same as VBILL, the VanEck Treasury fund that was previously onboarded to Horizon.
Securitize discloses direct commercial interest
In the proposal, Securitize disclosed that it has a direct commercial interest because it serves as the tokenization platform, transfer agent, and investment adviser for HINC.
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