Midas launches mGLOBAL as collateral on Aave Horizon

Midas has launched mGLOBAL on the Aave Horizon RWA Market, allowing the tokenised private credit product to be used as collateral on Aave's institutional real-world asset venue.

Investors can use mGLOBAL to borrow supported stablecoins while retaining exposure to the underlying strategy. Those stablecoins include USDC, RLUSD and GHO.

The listing brings a tokenised credit product tied to an institutional investment strategy into one of decentralised finance's largest lending ecosystems. Aave says its protocol has more than USD $24 billion in net deposits and more than USD $1 trillion in cumulative loan originations, while Horizon is aimed at qualified institutions seeking to borrow against tokenised real-world assets.

mGLOBAL is issued by Midas as a security token linked to the performance of a Fasanara Capital receivables strategy. The underlying portfolio invests mainly in short-duration trade receivables, digital invoices and asset-based finance exposures.

Fasanara, the appointed strategy manager, oversees more than USD $6 billion for institutional investors, including pension funds and insurers, across Europe and North America. The firm says the strategy track record dates to 2014 and that the portfolio spans more than 60 countries, over 140 originators and more than 700,000 open positions.

Unlike a stablecoin, mGLOBAL does not maintain a fixed value. Its price is based on net asset value linked to the performance of the underlying assets, giving holders access to a tokenised form of private credit rather than a cash-equivalent instrument.

Collateral use

The launch expands the range of tokenised real-world assets that can be pledged in onchain lending markets. For borrowers, it offers a way to raise liquidity without selling an investment position, a feature long common in traditional finance but still developing in tokenised markets.

Aave Horizon was built as a separate market for tokenised assets within a compliance-focused framework. The venue is designed for qualified institutions, reflecting a broader push across digital asset markets to bring regulated or permissioned products into established blockchain lending systems.

Midas says mGLOBAL passed Aave's review standards for risk, liquidity and operations, which all collateral assets must meet before admission. That screening is a notable hurdle because lending venues face the risk of sudden falls in collateral value, low liquidity and operational failures when accepting novel tokenised assets.

Liquidity design

Midas has also outlined a redemption structure for mGLOBAL intended to provide immediate exits without keeping large cash balances in the product. It says the system includes an internal liquidity sleeve set at 10% of total value locked and deposited into Aave for instant redemptions.

Beyond that first layer, Midas uses what it calls Staked Liquidity, a committed credit facility designed to fund instant redemptions once the internal sleeve is exhausted. The structure also includes an over-the-counter and liquidator network for larger exits, as well as a standard monthly redemption settled at official net asset value with no fee.

The model is intended to avoid holding idle cash that can weigh on returns. In practice, that means redemption liquidity is partly arranged through external credit lines rather than a large reserve of uninvested capital.

Verification layer

For disclosure and verification, Midas says mGLOBAL uses the Midas Attestation Engine. Built with Chainlink, LlamaRisk, vLayer and Canary, the system is designed to publish information such as net asset value, proof of reserves and smart contract checks onchain.

According to Midas, source data such as valuations or fund administrator reports are converted into structured claims, grouped into attestations and published onchain. Independent verifiers then confirm that the data came from an approved source and that the required process was followed.

The underlying assets are independently valued each month by JTC Luxembourg, which acts as fund administrator. Midas says mGLOBAL is issued through a dedicated compartment of a bankruptcy-remote Luxembourg securitisation vehicle intended to segregate assets and protect investors.

Market context

The launch comes as tokenised versions of private credit, government debt and other traditional assets move deeper into decentralised finance infrastructure. Much of the market has so far focused on distribution and access, but using tokenised products as collateral adds a financing function that could make them more useful in digital asset markets.

That also raises new questions for market operators and investors about valuation frequency, redemption mechanics and how private assets behave in a market built for round-the-clock borrowing. Monthly valuations and structured liquidity arrangements differ sharply from the immediate price discovery typical in public crypto markets.

Midas was founded in 2024 by Dennis Dinkelmeyer, Fabrice Grinda and Romain Bourgois. The company says it recently raised USD $50 million in Series A funding and has recorded more than USD $2 billion in asset issuance and USD $43 million in yield paid out to date.

Fasanara's portfolio is built around zero fund-level leverage, high granularity and short average maturity, with exposure spread across trade receivables, digital invoices and asset-based finance positions in more than 60 countries.