Secured Finance AG, the Zug‑based team behind the non‑custodial DeFi protocol Secured Finance, is taking a direct swing at that problem. The company announced it has integrated tokenized assets issued and distributed by DigiFT as eligible collateral within its protocol—starting with UBS Asset Management’s tokenized money market fund product, uMINT.

The move allows eligible users to pledge uMINT, acquired independently through DigiFT, as collateral in smart contract‑based financing arrangements on Secured Finance. In return, they can access on‑chain liquidity in USDC, JPYC, and other supported tokens, subject to platform terms and regulatory eligibility.

It’s not just another tokenization headline. It’s about turning regulated tokenized funds into usable DeFi collateral.

From Token Issuance to Financial Utility

Tokenization has become a recurring theme across capital markets. Banks and asset managers are experimenting with blockchain rails to deliver:

• Faster settlement
• 24/7 market access
• Programmable ownership
• More efficient collateral mobility

But issuance alone doesn’t create liquidity. The real test is whether tokenized assets can be integrated into financing workflows.

This integration positions uMINT—a tokenized representation of UBS’s USD money market investment fund—as a “cash‑equivalent” asset that can actively support on‑chain borrowing and funding strategies.

Instead of simply holding tokenized exposure, eligible investors can now use it to unlock capital efficiency inside a DeFi‑native protocol.

That shift—from passive token holding to active collateral utility—is where tokenization starts resembling infrastructure rather than experimentation.

How the Integration Works

At a high level, the framework connects three components:

Eligible Asset
UBS USD Money Market Investment Fund Token (uMINT), distributed via DigiFT and held by eligible users.

On‑Chain Liquidity Access
Users can access liquidity in USDC, JPYC, and other supported tokens available on the Secured Finance protocol.

Smart Contract Execution
All financing arrangements are executed non‑custodially through smart contracts on Secured Finance.

Participation remains subject to regulatory and platform requirements, including allowlists, investor classification, and jurisdictional eligibility. That structure reflects the increasingly hybrid nature of tokenized finance—regulated assets operating within permission‑aware DeFi environments.

uMINT is the first asset integrated under the partnership, but Secured Finance says the framework is designed to support additional tokenized RWAs over time.

Why uMINT?

Money market funds are emerging as one of the most practical starting points for tokenization.

They offer:

• Short duration exposure
• High credit quality
• Cash‑equivalent characteristics
• Institutional familiarity

In traditional finance, money market funds frequently serve as collateral in secured lending and treasury management. Tokenizing them creates a bridge between conventional capital markets and on‑chain liquidity pools.

By enabling uMINT to function as collateral rather than a static holding, Secured Finance and DigiFT are effectively recreating secured funding mechanics on blockchain infrastructure.

That’s a notable step forward compared to earlier tokenization pilots that focused primarily on issuance without secondary financial integration.

The Bigger Trend: RWA Meets DeFi

Real‑world assets have become one of the fastest‑growing segments in crypto infrastructure. According to industry estimates, tokenized treasuries and money‑market‑like instruments now represent billions in on‑chain value.

What’s changing in 2026 isn’t just the volume of tokenized assets—it’s how they’re being used.

DeFi protocols increasingly seek stable, yield‑bearing, lower‑volatility assets as collateral. At the same time, regulated asset managers want credible utility cases for tokenized products beyond internal experiments.

This integration checks both boxes:

• For DeFi users: Access to high‑quality collateral that may reduce volatility risk compared to crypto‑native tokens.
• For asset issuers: Expanded distribution utility and capital efficiency for tokenized funds.

It also reflects a subtle but important evolution: permissioned elements coexisting with decentralized execution.

While the financing occurs on‑chain via smart contracts, eligibility requirements ensure that regulatory constraints remain intact. That hybrid architecture is becoming the dominant design pattern in institutional DeFi.

Strategic Implications for Secured Finance and DigiFT

For Secured Finance AG, this move positions the protocol as infrastructure for tokenized capital markets rather than purely crypto‑native lending.

Founder and CEO Masakazu Kikuchi framed the integration as enabling “real‑world, always‑on financial infrastructure.”

For DigiFT, the integration extends beyond distribution. By enabling uMINT to be used as collateral, not merely held, DigiFT strengthens the economic rationale for tokenized RWA adoption.

Founder and CEO Henry Zhang emphasized that the collaboration connects regulated tokenized assets to actual financing demand—showing how tokenization can move beyond issuance into real financial utility.

Competitive Landscape

Other DeFi protocols and tokenization platforms have begun experimenting with tokenized treasuries and fund tokens as collateral. However, many remain siloed within specific ecosystems or operate in limited pilot phases.

What differentiates this integration is:

• Direct use of a major asset manager’s tokenized fund
• Smart contract‑based, non‑custodial execution
• Structured eligibility and compliance guardrails
• Support for multi‑token liquidity access (e.g., USDC, JPYC)

If scaled, similar integrations could gradually transform DeFi lending markets into hybrid liquidity venues where regulated RWAs and crypto‑native assets coexist.

That would mark a structural shift in how capital moves between traditional finance and blockchain infrastructure.

Still Early, But Directionally Clear

Tokenization’s long‑term success depends on moving from proof‑of‑concept to financial plumbing.

Allowing uMINT to serve as on‑chain collateral is a practical step in that direction. It demonstrates that tokenized funds can plug into funding markets, not just sit in wallets.

Whether this becomes a broader institutional trend will depend on regulatory clarity, liquidity depth, and risk management standards. But the blueprint is taking shape: regulated assets, smart contracts, permission‑aware access, and cross‑market liquidity.

In short, tokenization is inching closer to functioning like real capital markets infrastructure.

And this integration shows what that next phase could look like.

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