Midas Fasanara mGLO in Morpho Onchain Repo
Overview of the collateral asset, July 2026
This memo reviews mGLO on Base as collateral in the mGLO/USDC Morpho market. Ethereum mGLOBAL references the same Fasanara strategy, but its transfer rules, lending venue and liquidity arrangements differ. mGLO and mGLOBAL are issued through legally separate compartments of the Aureum Securitisation Fund. Unless stated otherwise, the market analysis below applies only to Base mGLO.
The figures in this post reflect information reviewed through 15 July 2026. Portfolio and facility figures attributed to Midas or Fasanara are their representations and can change.
0. Preface
The motivation for enabling mGLO is practical. Holders seek credit against a short-duration collateral position, so the market must be calibrated to the quality of the underlying strategy and the path from collateral seizure to cash repayment. As utilisation changes, borrowing costs and liquidation incentives can change as well. The market therefore needs to be sized and monitored around the way collateral can convert back into cash, not around an assumption of frictionless exit.
Steakhouse’s review of the Base mGLO/USDC borrow/lend venue focuses on that full path. Its underlying receivables are granular, appear to benefit from several forms of credit enhancement, currently unlevered and approximately 90 days in duration, allowing performing assets to convert to cash as they mature.
For the shorter liquidation clock, Midas Staked Liquidity and pre-arranged institutional buyers provide finite same-day or T+1 exit capacity, with standard fund redemption as the final route. Morpho values mGLO at 94% of the last published NAV and applies a 91.5% LLTV, limiting debt to 86.01% of undiscounted NAV and leaving a marked-value margin above the stated cost of the faster exits. Monthly mint windows at 93% initial issuance also limit the amount of freshly issued collateral that can enter the market against an aging mark.
These controls do not remove the frictions of private credit. They do, however, distinguish portfolio recovery from immediate liquidation and support a market size tied to functional liquidity.
1. Executive summary
mGLO is a tokenised, USD-denominated note on Base that gives holders economic exposure to the same Fasanara reference portfolio as Ethereum mGLOBAL. The pool is built primarily from invoices sold by small and medium-sized businesses that want payment before the invoice due date. The party that owes the invoice is usually a larger corporate account debtor.
The SME supplier receives early working capital, but the primary payment obligation sits with the account debtor. Fasanara earns a spread associated with SME financing while underwriting a short-duration debtor book materially stronger than the suppliers selling the invoices. Seller fraud, invoice disputes, dilution, servicing failures and originator risk remain part of the exposure.
The portfolio is part of Fasanara Capital’s Global Diversified Alternative Debt Fund strategy. The mGLOBAL vehicle accesses that strategy through an open-ended Luxembourg SICAV-RAIF. Fasanara is authorised and regulated by the UK Financial Conduct Authority and the strategy dates to 2014. The latest public ARC report1, dated March 2026, assigned the broader GDADF strategy an a(f) fund rating with a stable outlook. Its scope is the fund. It gives no credit rating for the receivables, the 2026 mGLOBAL or mGLO vehicle.
The token represents a limited-recourse note issued through the mGLO compartment of the Aureum Securitisation Fund and administered onchain by Midas. The compartment holds shares of the Fasanara GDADF Fund, which in turn invests through the receivables strategy. Primary minting and direct redemption require KYC and AML eligibility. Base mGLO is freely transferable while transfers remain active and the receiving address is not blocked.
The official fund NAV is calculated monthly and published onchain through role-gated feeds. It is an administrator valuation rather than a standing cash bid. Primary issuance is confined to a defined window after a NAV publication, and the minting process initially delivers 93% of the expected tokens, with the balance settled after the next official NAV. These controls reduce new issuance against an aging mark. An existing mGLO holder can still borrow against circulating tokens between NAV dates.
The Base Morpho market adds a discounted oracle and liquidation threshold on top of the underlying NAV process. Its oracle values mGLO at 94% of the last published NAV before applying Morpho’s 91.5% liquidation loan-to-value threshold. The result is an effective debt threshold of 86.01% of the last published, undiscounted NAV. Faster exits are intended to come from Midas Staked Liquidity, pre-arranged institutional buyers and RFQ venues. Standard redemption through the fund cycle remains the final route.
We assign mGLO an internal Steakhouse collateral rating of BB, or medium risk, at the 86.01% effective threshold. Short tenor, portfolio granularity, administrator-calculated NAV under a documented valuation methodology, reported credit-enhancement features, compartment segregation, a layered liquidity framework, and the market haircut support the assessment. Private-credit information gaps, monthly valuation, finite fast liquidity, centralised administration and limited recourse keep the final rating at BB.
2. Underlying exposure and core of the product
2.1 Short-term invoice financing
An SME delivers goods or services to a corporate customer and receives an invoice payable in roughly 30 to 90 days. Rather than wait, the SME sells the receivable at a discount. The financier advances cash to the SME and collects from the account debtor when the invoice falls due.
The credit analysis starts with the party that owes the invoice. Fasanara reported the following internal distribution for the current debtor book:
AA (40% of exposure)
A (41% of exposure)
BBB (10% of exposure)
BB (7% of exposure)
B (2% of exposure)
These are Fasanara’s internal grades and cannot be mapped directly to an external bond scale. The distribution does, however, show why describing the strategy only as “SME credit” is incomplete: 81% of the payment obligations fall within Fasanara’s internal AA and A bands.
Loss can also arise outside the account debtor. A valid invoice can be diluted by returns or offsets. A disputed or fraudulent invoice may miss its payment date. Cash can be commingled, an originator can fail, a servicer can perform poorly and an insurer can contest a claim. Those risks explain why a high internal debtor grade does not translate into a high collateral rating by itself.
2.2 Portfolio characteristics
Average contractual duration is approximately 90 days. Performing assets settle into cash as invoices mature.
The portfolio contains more than 700,000 receivables across roughly 140 originators and more than 60 countries. The average position at the time of review is approximately 0.01 basis points of NAV.
The fund is unlevered at the time of review. The governing documents permit borrowing, so this is a current position rather than a permanent limit.
Fasanara reported strategy assets under management of approximately US$6 billion and a target net yield of approximately 7%
The target is not guaranteed and can change with portfolio performance, fees, market conditions and fund terms.
Position count reduces the effect of a single small invoice. It does not establish the largest obligor, originator, country, sector or servicer exposure. Those concentrations remain part of ongoing monitoring.
2.3 Credit enhancement and stress behaviour
Fasanara reports that approximately 80% of exposure benefits from at least one form of first-loss capital, overcollateralisation, credit insurance, or a government or corporate guarantee. Advance rates are commonly reported in the 85% to 90% range.
The 80% figure is not an 80% loss buffer. A retained junior tranche, an insurance policy and a corporate guarantee cover different events and attach at different points. Their value depends on the size of the protection, exclusions, counterparty strength and enforceability. They are still meaningful because the fund often holds senior exposure with another party absorbing an initial layer of loss.
The broader strategy’s historical defaults were reported below 1% in most years. In our earlier review of the higher-yielding mF-ONE vehicle2, we found a 2.19% peak in 2020 and annual recovery above 58%. According to manager data reviewed for this assessment, the historical strategy reported a positive net return that year - this historical result does not indicate future performance.
Short duration changes the response to stress. The manager can stop buying new receivables, tighten advance rates and let performing invoices convert to cash without selling a long-duration loan book. Workouts remain slower. Fraud, dispute and insolvency cases can take much longer than the contractual 60 to 90 days.
Short tenor also leaves correlation risk. Corporate payment stress and onchain stablecoin scarcity can occur at the same time. Portfolio runoff helps the fund raise cash over weeks, while caps and separately funded buyers are needed to cover liquidation on a shorter clock.
We view this issuance as a positive iteration on onchain private credit. Many of the 2022-2023 onchain experiments were with unsecured offchain credit of a materially different credit quality. In this instance, Fasanara reports a US$6 billion strategy, more than 700,000 positions, no current fund borrowing and several forms of credit enhancement.
While these mitigants do not speed up a court process or a disputed receivable workout, the reported scale, granularity, current absence of fund borrowing and credit-enhancement features make this materially different from many earlier unsecured offchain-credit pools and may reduce concentration and refinancing risk.
The underlying history is more informative than the short and smooth token price record. We therefore assess the credit through the strategy’s loss, recovery and portfolio data rather than calibrating the collateral only from observed mGLO NAV volatility.
3. Legal and structural wrapper
The legal chain reviewed by Steakhouse is:
mGLO note holder → Aureum mGLO compartment → Fasanara mGLOBAL Fund shares → GDADF receivables strategy
The holder owns a tokenised note, i.e. a security within the meaning of Art. 4 Para. 1 No. 44 and Annex I Section C MiFID II, without title to individual invoices or a direct claim on an account debtor.
3.1 Note issuer
The issuer is Aureum Securitisation Fund, a Luxembourg fonds de titrisation non réglementée established under the Luxembourg Law of 22 March 2004 on securitisation and managed by Aureum Manco S.à r.l. as a management company, acting through its dedicated mGLO compartment.
The mGLO compartment constitutes a segregated pool of assets and liabilities within Aureum. All rights and claims arising in connection with the Notes are limited to the assets allocated to the mGLO compartment, and noteholders have no recourse to assets allocated to any other compartment of Aureum or to Aureum’s general assets. Noteholders are subject to non-petition provisions and may not attach, seize or otherwise enforce against assets outside the mGLO compartment, nor initiate or support any winding-up, liquidation, bankruptcy or similar insolvency proceedings in respect of Aureum or the mGLO compartment.
The management company is held through the Midas Purpose Trust, an orphan structure with no economic interest in the underlying assets. The combination of statutory compartment segregation, contractual non-petition protections and the orphan ownership of the management company supports bankruptcy-remoteness and cross-compartment protection.z
3.2 Underlying fund
The compartment holds shares in Fasanara mGLOBAL Fund, Sub-Fund 36 of a Luxembourg SICAV-RAIF. Ascender Fund Partners is the authorised alternative investment fund manager, Fasanara Capital Limited is the investment manager, and Banque de Patrimoines Privés S.A. is the depositary.
The regulated service-provider chain sits at the fund layer. An mGLO holder reaches it through the Aureum note. Collateral outcomes therefore depend on the note terms, compartment assets, fund administration and the underlying receivables portfolio working together.
4. Onchain workflows
4.1 Subscription and minting
An eligible participant completes Midas KYC and AML onboarding and may submit a subscription request
The monthly minting window opens after publication of the relevant NAV. Minting is disabled for approximately 90% of the month.
The eligible participant subscribes for notes by payingUSDC. The reviewed workflow initially issues 93% of the expected mGLO at the last official NAV.
After the next official NAV is available, the remaining amount is calculated and minted, the average settlement (instant part and holdback) is done at the next official NAV.A lower NAV results in fewer additional tokens, effectively aligning the total subscription value with the next official NAV price.
The window and holdback reduce the amount of new collateral that can be created against an old valuation. The NAV remains monthly, and a holder of existing mGLO can still borrow during the closed minting period.
4.2 Midas instant-redemption route
An eligible holder requests instant redemption through the Midas redemption route and sets a minimum amount of stablecoin to receive.
The vault checks eligibility, pricing, limits, payment-token conditions and available liquidity.
Under the reviewed mGLO workflow, 93% of the value is paid immediately, net of the instant-redemption fee, and the redeemed tokens are burned.
The 7% holdback is settled after the underlying fund clears at the next official NAV.
If the next official NAV goes up, the holdback settlement is at the request-time NAV.
If the next official NAV goes down, the average settlement (instant part and holdback) is done at the next official NAV. This approach minimizes the risk of front run.
Midas Staked Liquidity3 advances USDC to the product compartment and waits for the underlying fund redemption to settle. It is a finite bridge facility rather than a standing secondary-market bid.
4.3 Standard redemption
The holder submits a redemption request before the monthly cut-off.
The compartment redeems the relevant underlying fund shares.
Subject to fund terms, dealing limits, deferral or suspension rights and operational processing, payment is expected to be made at the applicable official NAV, ordinarily around 35 days after the valuation date.
Standard redemption is a delayed contractual exit at administrator NAV. The holder retains a limited-recourse note claim while settlement is pending and bears NAV, timing and operational risk. Fund dealing limits, deferral and suspension rights can extend the wait. Under the reviewed documents, redemptions on a dealing day may be limited to 12.5% of NAV, once aggregate subscription into Sub-Fund 36 equals or exceeds USD 200,000,000..
4.4 NAV publication
The administrator determines the official month-end NAV. Midas (Aureum) reviews the data, deducts applicable fees and publishes the value through its onchain oracle process. Midas’s oracle documentation 4describes role-gated updates, deviation checks, timestamps, heartbeat controls and hard price boundaries. The preferred update path reviewed by Steakhouse limits routine changes to 1% per update and enforces a one-hour cooldown.
A separate higher-quorum path can publish a larger change. Midas (Aureum) can also pause deposits and redemptions if a reliable NAV cannot be established. Those controls are designed to reduce the risk of an erroneous update.
5. Liquidity and redemption
Base mGLO currently does not have a secondary exchange market on DEX venues. Its liquidation design is intended for several routes with different sources of capital and different failure modes.
Liquidity routes:
Midas Staked Liquidity: instant settlement at a 0.5% fee; Midas announced5 a platform commitment of up to US$40 million across supported products.
Institutional buyers: T+0 or T+1 sale at a 3% fee, with ~US$130 million of aggregate purchase capacity.
Standard redemption: contractual fund route, monthly at NAV, no standard-redemption fee.
Additional RFQ venues may be available both onchain or offchain for clearing secondary markets between authorized buyers and sellers.
Ethereum mGLOBAL has a separate internal sleeve invested in Aave v3 USDC. The collateral venue for that token is Aave Horizon, a separate Aave market. The sleeve is an asset of the mGLOBAL compartment rather than a credit facility, but it remains finite and exposed to Aave v3 withdrawal conditions. mGLO is issued by a separate KO compartment without liquidity sleeve and legally independent from mGLOBAL. The Base mGLO analysis excludes it.
Base mGLO can be transferred to a non-blocked address while transfers are active. Receipt of seized collateral does not require Midas (Aureum) onboarding. Direct Midas (Aureum) redemption and the institutional purchase routes do. Liquidators that expect to use those routes should complete onboarding before a stress event.
6. Discounted Morpho oracle
The mGLO/USDC6 market reads a discounted value instead of the raw Midas NAV. Its market oracle7 consumes a dedicated wrapper feed8 that returns 94% of the upstream Midas NAV.
Market parameters:
Collateral: mGLO
Loan asset: USDC
Morpho LLTV: 91.5%
Fixed discount to Midas NAV: 6.0%
Oracle value as a share of NAV: 94.0%
Effective debt threshold against undiscounted NAV: 86.01%
At a US$1.00 published NAV:
Discounted oracle value = 1.00 x 94% = 0.94
Effective debt threshold = 0.94 x 91.5% = 0.8601
Morpho’s liquidation incentive factor at a 91.5% LLTV is approximately 1.0262. A liquidator repaying US$1.00 of debt receives collateral worth approximately US$1.0262 at the discounted oracle. If the last published NAV remains fully recoverable, that collateral has an undiscounted marked value of approximately US$1.0917.
The resulting 9.17% is a gross marked-value uplift over debt repaid. That margin is sized against the exit routes above: instant redemption through Midas Staked Liquidity costs 0.5% (93%*(1-0.5%) settled immediately, 7% trued up at the next NAV), the OTC / liquidator network is described as settling at a 3% discount to NAV against pre-arranged institutional purchase capacity, and the standard monthly route redeems at par. Under the assumptions above, the 6% pricing buffer is intended to provide room for the stated exit costs. Of course, actual liquidation outcomes can vary with NAV movement, liquidity availability, execution timing, eligibility, operational constraints and other market conditions.
7. Collateral rating assessment
Instrument: mGLO on Base
Legal issuer: Aureum Securitisation Fund, acting through its mGLO compartment
Token administrator: Midas
Underlying investment manager: Fasanara Capital Limited
Token address on Base:
0xFCc9Cc1209651Ed8867332d6F664CF82743A2584Token type: ERC-20 mToken
Morpho LLTV: 91.5%
Oracle factor: 94% of the last published Midas NAV
Effective debt threshold: 86.01% of the last published, undiscounted NAV
Steakhouse collateral rating: BB
We assign BB to mGLO as collateral, reflecting reasonable risks across the asset issuer, the underlying credit exposure, and the smart contracts governing the token. The senior, well-enhanced nature of the short-term trade-receivables exposure is offset by the information asymmetry and originator dependence inherent to private credit, and by an issuer that operates within Luxembourg’s securitisation framework outside the scope of AIFMD. mGLO’s valuation is driven by the underlying fund NAV published on-chain through bounded, role-gated price feeds, with redemption routes that include a Midas (Aureum) instant-redemption route (subject to eligibility, fees, limits and available liquidity conditions), and a standard monthly fund route at the applicable NAV.
Rating summary
Asset rating: BB (minimum of counterparty, credit and operations)
Counterparty risk: BB
Credit risk: BB
Operations risk: BB
Platform rating: not separately assigned
Market rating: BB (minimum of oracle, liquidity and market haircut)
Oracle: AA
Liquidity: BB
Market haircut: AA
Final rating: BB (minimum of applicable asset and market ratings)
7.1 Asset rating: BB
Counterparty risk: BB
Key Drivers
Aureum is a securitisation vehicle and by law restricted to securitisation activity. The issuer operates within a defined legal framework rather than as a licensed asset manager. The token is issued through the Aureum Securitisation Fund, a Luxembourg securitisation fund subject to the Securitisation Act 2004, with an ordinary Luxembourg S.à r.l. as its management company.
The regulated asset-management and fund-administration functions reside with Fasanara Capital Limited (FCA-authorized investment manager) and Ascender Fund Partners (AIFMD-regulated administrator).
In rating terms considering solely the issuer of the notes this corresponds to a recognised legal framework operated by a non-asset-manager management company. This rating does not reflect the credit quality of the issuer but the regulatory context.Administration is centrally controlled by Midas through role-based access control and multisig signers; the system is not decentralised.
Governance Controls (Mitigants)
Bankruptcy-remote structure: the management company is held by the orphan Midas Purpose Trust, with statutory compartment segregation, limited recourse and non-petition under the Securitisation Act 2004.
Role-based access control across the token and vault contracts, with privileged actions gated to Midas (Aureum) -controlled roles and multisig signers.
Greenlisting (KYC/AML) required for primary mint and redeem.
Implication
Collateral outcomes rely on the issuer’s administration within Luxembourg’s securitisation framework, supported by statutory segregation and bankruptcy remoteness, rather than on decentralised on-chain enforcement.
Credit risk: BB
Key Drivers
Exposure is to a diversified pool of short-term trade receivables under Fasanara’s GDADF strategy - invoices payable by large corporate debtors, originated from SMEs. The exposure is senior in nature (senior unsecured commercial credit), with approximately 80% of credit exposure enhanced by credit insurance, first-loss protection or guarantees, and conservative advance rates of 85–90%.
The strategy carries an ARC Ratings a(f) fund rating (stable outlook); historical defaults are reported below 1% with recoveries typically above 60%.
The seniority and enhancement of the exposure could support a higher band; the rating is held at BB because this remains private credit, subject to information asymmetry and originator risk.
Key Concentration / Structural Considerations
Granular and diversified: approximately 700,000 receivables across ~140 originators in 60+ countries; no leverage at fund level.
Implication
Senior, well-enhanced, short-dated credit exposure, with the rating constrained by the information asymmetry and originator dependence characteristic of private credit.
Operations risk: BB
Key Drivers
Audited code and a live bug bounty.
Multi-year operating profile of the Midas token framework, with total value locked in the hundreds of millions
Economic transparency: the underlying fund NAV is regularly published on-chain through dedicated price feeds, while off-chain value notarizations (via vLayer), overcollateralization attestations (via Chainlink CRE), and independent verification results (via Canary Protocol) are all pushed on-chain into the Midas Attestation Engine.
Implication
A mature operational profile with on-chain NAV publication; the pillar is held at BB on a worst-of basis by audit coverage.
7.2 Platform rating: None
7.3 Market rating: BB
Oracle: AA
Key Drivers
The market uses the intrinsic NAV of the underlying fund, published on-chain through dedicated growth-based feeds (separate deposit-side and redemption-side feeds), reflecting net asset value rather than a market-traded price.
NAV updates are role-gated and bounded: each update must fall within hard minimum and maximum limits, and the safe-update path enforces a maximum per-update deviation and a minimum interval between updates.
The Morpho market prices collateral through a dedicated wrapper feed that applies a fixed 6% discount to the published NAV, a conservative, liquidator-facing buffer
Implication
A NAV-based, bounded oracle reduces exposure to market-price manipulation.
Liquidity: BB
Key Drivers
Primary redemption is available through a standard monthly cycle at the applicable NAV. The reviewed materials also describe layered liquidity routes, including Midas Staked Liquidity and an OTC / liquidator network, that may support faster exits subject to eligibility, fees, limits, available liquidity and operational constraints.
Implication
Liquidity is structured, with both instant and monthly routes; primary redemption operates on a short-notice / monthly basis.
Credit Enhancement: AA
Key Drivers
The credit-enhancement pillar is derived from the moderate price-fluctuation profile of the collateral against the loan asset, adjusted by the effective loan-to-value. At an effective LLTV of 86% (official Moprho Market LLTV of 91.5% adjusted by the 6% discounted oracle), the adjustment lifts the base assessment by three notches to AA.
The 86% effective LLTV provides a moderate haircut and liquidation incentive consistent with the NAV-based pricing and the short-duration receivables underlying the strategy.
Implication
The 86% effective LLTV provides a valuation buffer against the published NAV, subject to NAV movement, liquidity availability and execution risks.
Final rating: BB
8. Operational security considerations
Steakhouse reviewed Midas’s operational setup on 14 July 2026. The review covered custody policy, privileged roles, the NAV process, mint controls, upgrade governance and planned remediation. This section describes the control design without publishing the full signer and policy map.
8.1 Deployed controls
Operational roles sit behind multi-party MPC custody policies. The reviewed default for the relevant Fordefi vaults was a 4-of-7 approval policy.
The mGLO Management Vault9 holds mint, burn and pause operator roles. Burn is policy-pinned to a designated wallet. Pause uses an expedited containment path, while unpause requires stronger approval.
The Vaults Manager10 controls fees, daily limits, accepted payment tokens, receivers and request approvals. The user deposit path is greenlist-gated, checks the payment-token price and carries a US$30 million instant daily limit in the reviewed configuration.
The Oracle Admin11 publishes NAV updates. The preferred path enforces a 1% maximum change and a one-hour cooldown. Routine updates require two core signers plus an independent transaction-screening co-signer under the reviewed policy. Larger changes use a separate higher-quorum path.
Contract upgrades pass through a 48-hour timelock12 before reaching the ProxyAdmin. The timelock is controlled by an admin Safe whose members are themselves multi-party custody systems.
These controls reduce single-key and accidental-update risk. Some approval thresholds live in custody-platform policy rather than in the token contracts, so onchain observers cannot verify every policy condition from contract state alone.
8.2 Minting and oracle residuals
User minting runs through a greenlist-gated deposit vault with contract-level bounds, a payment-token allowance and a USDC peg check. OTC minting runs through the Management Vault behind the 4-of-7 custody policy. The OTC path lacked a contract-level rate limit at the time of review.
The preferred oracle update function has tight deviation and timing controls. A separate administrative function permits a much wider value range and relies on the higher-quorum policy. That path is necessary for a genuine large down-mark, but it also leaves more discretion with the operator.
Midas described planned changes targeted for the third quarter of 2026, including contract-level rate limits across mint paths, a governance delay and alerts for OTC minting, stronger controls on the wider oracle-update path, automated monitoring and broader timelock coverage for runtime roles. These planned changes are not current controls and remain subject to implementation.
