Midas & Wellington launch tokenised credit strategy

Midas has partnered with Wellington Management to launch mWIN, a tokenised institutional credit strategy issued on blockchain rails.

Structured through a Luxembourg securitisation vehicle, mWIN gives investors exposure to an actively managed multi-sector fixed-income portfolio. Wellington manages the investment strategy, Northern Trust is custodian of the underlying assets, and Sentora is making the token available as collateral on Morpho at launch.

The launch is an attempt to move tokenised real-world assets beyond simple structures linked to a single bond or Treasury instrument. Instead, the product packages a diversified credit portfolio that can be adjusted over time and used in decentralised finance lending markets from the outset.

The underlying portfolio includes collateralised loan obligations, commercial mortgage-backed securities, agency and non-agency residential mortgage-backed securities, asset-backed securities, and investment-grade corporate bonds. The strategy is managed within set limits covering measures such as duration and credit quality, according to Midas.

Wellington is among the world's largest investment managers, with more than $1.3 trillion in assets under management across fixed income, equities, multi-asset, and alternatives. Its role is to construct and manage the compartment that holds the assets linked to mWIN.

"mWIN represents the next step in Wellington's work with firms building the future of digital capital markets. Building on our prior tokenization initiatives, we're partnering with innovative issuers, such as Midas, to bring institutional-quality investment strategies onchain while maintaining the portfolio construction, research, and risk management disciplines our clients expect," said Mark Garabedian, Director of Digital Assets and Tokenisation at Wellington Management

Onchain credit

Tokenisation is drawing growing interest from asset managers, banks, and financial technology groups seeking to represent conventional financial assets on blockchain networks. So far, much of the market has focused on money market funds, Treasury products, and single-asset structures that are easier to price and administer.

Midas is seeking to differentiate mWIN by bringing an actively managed credit strategy onchain in a form that can also be posted as collateral. Sentora, which works on DeFi vaults and risk frameworks, has assessed the token for use in a dedicated Morpho market where PayPal's PYUSD stablecoin will be the loan asset.

That means holders will be able to borrow against the token rather than simply hold it as passive fixed-income exposure. The design reflects a broader push in digital assets to make tokenised securities usable in onchain trading, lending, and treasury management.

Structure and custody

The product is issued through a multi-compartment Luxembourg securitisation vehicle, with each compartment legally separated from the others. Midas said the arrangement is intended to ringfence the assets and liabilities of each strategy and mirror that segregation in custody arrangements.

Northern Trust holds the off-chain assets in segregated accounts for each compartment and also provides daily pricing for the underlying portfolio, which is used for net asset value calculations. The vehicle is set up so investors in one compartment do not have exposure to the performance or liabilities of another, according to Midas.

The structure is designed to reduce layers between the investor and the portfolio, compared with some tokenised products that rely on multiple wrappers, Midas said. That issue has been a recurring concern for institutional investors weighing the operational and legal complexity of blockchain-based investment products.

Liquidity model

A key issue for any token intended for use as collateral is whether investors can exit their positions quickly. Redemptions for mWIN are handled through what Midas calls an Open Liquidity Architecture, which draws on an internal liquidity sleeve, a separate staked liquidity facility, and an external network of over-the-counter buyers.

Midas said this approach is intended to provide instant redemptions while preserving a standard redemption route that follows the settlement timetable of the underlying assets. For DeFi users, reliable liquidity is critical because collateral that cannot be readily sold or redeemed can create market stress during periods of volatility.

mWIN is live on Ethereum, with subscriptions available in USDC and PYUSD. The product will also be extended to Monad, another blockchain network, though the current launch is centred on Ethereum, according to Midas.

Midas said its broader infrastructure has facilitated more than $2 billion in asset issuance. It added that its token framework is built to support transparency, onchain attestations, and integration with lending markets and other decentralised applications.

The business, founded in 2024, recently raised $50 million in a Series A round backed by investors including RRE, Creandum, Franklin Templeton Blockchain Fund, Coinbase Ventures, and Anchorage Digital Ventures. It said the platform has issued more than $2 billion in assets and paid out $46 million in yield to date.

Midas said it is the first time an institutional investment manager of this scale has brought a diversified credit strategy to market through native onchain issuance.