Apollo leverages Morpho to enable tokenized private credit funds as collateral to borrow stablecoins
$900B+
Ethereum, Polygon, OP Mainnet
The Opportunity
With over $900 billion in assets under management, Apollo Global Management is a leading private credit investor and one of the most innovative firms in institutional asset management.
As decentralized finance matured, particularly onchain lending protocols, a new opportunity emerged: bringing traditional private credit funds onchain in a way that preserved institutional standards while unlocking new utility.
By tokenizing fund positions, investors in vehicles such as ACRED (Apollo Diversified Credit Fund) could use their fund shares as collateral on lending protocols, enabling them to access liquidity and deploy structured leverage strategies that are not available in traditional finance.
The Solution
In 2025, Apollo’s ACRED fund was brought onchain and was quickly utilized as collateral on Morpho.
This allowed ACRED holders to borrow stablecoins directly against their fund positions and redeploy that liquidity onchain. This creates a capital-efficient “looping” strategy that captures the spread between ACRED’s yield and stablecoin borrowing costs.
Since then, Apollo has expanded both the number of tokenized ACRED variants and the networks on which they operate. Today, ACRED is available as collateral on Morpho across Ethereum, Polygon, and OP Mainnet.
In practice, Morpho transformed ACRED from a passive investment into an onchain asset that can be actively used to access liquidity and structured leverage.
The Results
Apollo’s ACRED launch demonstrates what tokenization unlocks for institutional funds: global access, broader distribution, and faster settlement.
Morpho extends that impact beyond access. By making ACRED usable as collateral, Morpho turns a passive fund position into a productive onchain asset, one that can be used to unlock liquidity and participate in onchain lending and structured strategies.
As more offchain financial products move onchain, the pattern is clear: tokenization enables access, while onchain financial infrastructure creates new utility.