Introducing Allocations

Today we’re launching a new feature, Allocations, that lets fintechs and institutions access a range of financial instruments, whether onchain-native or tokenized versions of traditional assets. The first product available through Allocations, 0fns, is powered by M0’s programmable stablecoin infrastructure directly inside Dfns. With Allocations, firms can invest, manage treasury, and deploy capital safely and efficiently without an onerous number of integrations. Instead of leaving funds dormant, Allocations offers a secure, auditable, and unified gateway to onchain capital markets.

A new way to make your assets work

Institutional treasury teams often operate across a fragmented ecosystem. One custodian for safekeeping, another OTC desk for liquidity, and separate onchain protocols for rewards or exposure. This fragmentation adds friction, creates security gaps, and increases compliance risk.

Allocations change that by bringing everything under one secure roof. Built on the infrastructure that powers Dfns wallets, Allocations inherits all our enterprise grade properties such as hardware isolated MPC signing, granular role based policy approvals, real time webhooks, immutable cryptographic audit logs, and more. These capabilities let institutions invest, manage liquidity, and earn rewards within a single, policy controlled environment without exposing funds to fragmented or unvetted systems.

Allocations also improve capital efficiency. As Dfns adds more onchain protocols and tokenized money markets over time, this new service will evolve into a smart routing and price discovery layer that helps institutions optimize investment, liquidity, and execution quality across one treasury platform. Dfns is extending its platform from wallet infrastructure to a foundation for onchain treasury operations where security, liquidity, and rewards coexist within a single, auditable system.

Our first integration with M0 marks the beginning of this expansion. Through M0’s stablecoin platform, clients can put dormant assets to work directly from the same wallets they already rely on for custody, payments, and settlement. This unlocks new opportunities for treasuries, fintechs, and financial institutions alike:

• Active treasury management: turn stablecoin balances (like USDC) into productive assets.
• Automated, passive returns: earn transparent rewards backed by liquid, high quality collateral.
• Compliant onchain access: tap into DeFi programmability within a bank-grade environment.

Building on M0, the agnostic stablecoin issuer

M0 is a permissionless, fully collateralized onchain monetary system that represents a new generation of stablecoin infrastructure. Tokens built on M0 are backed one to one by short-term U.S. Treasuries are held offchain, while independent Validators continuously attest to reserves onchain. This architecture merges real-world collateral with cryptographic proof, which combines the reliability of traditional finance with the transparency of decentralized systems.

As of October 26, 2025, the M0 network secured over $830 million in reserves, supporting 823 million in aggregated M0-network supply in circulation. The system remains overcollateralized (101%) with an average rewards rate of 3.9%, generated from the reserves backing each token, maturing in under 180 days. Since inception, it has distributed more than $9 million in automated, programmatic earnings to eligible integrators. 

Built atop this foundation is an active ecosystem of stablecoins and synthetic dollar products, including USDai, UsualM (Usual), mUSD (Metamask), and USDN (Noble), representing over $740 million in circulation. Each inherits M0’s transparency, full collateralization, and continuous onchain attestations. M0 is open, composable, and permissionless. Developers and institutions can integrate it directly via smart contracts. 

Dfns leverages this flexibility to create 0fns (with a zero), built for permissioned institutional use within our client base. Within Dfns, all 0fns related operations (e.g., swaps, wraps, and accruals) are atomic, transparent, and policy-enforced. Our clients can convert stablecoins like USDC into a productive asset, earning returns directly in their wallets, and convertible anytime. Every action follows Dfns’ secure transaction lifecycle, governed by entitlements, policies, and cryptographic logs. This removes the need to tie together multiple external systems or manage private keys across fragmented infrastructures, reducing operational risk while maintaining full transparency.

0fns, powered by M0, is the first step for Allocations. In the coming months, Dfns will add integrations with Morpho, Gauntlet, and other protocols to expand access to onchain money markets, risk models, and tokenized credit. The long-term goal is to make Allocations a modular treasury orchestration layer, where institutions can manage, secure, and optimize capital across multiple onchain products from one interface.

How the M0 integration works

The M0 integration is built around the 0fns smart contract, an ERC-20 extension deployed and operated in partnership with Dfns and M0. It enables Dfns clients to hold and manage 0fns tokens in a permissioned and policy-controlled way.

• Deposit:
  
  • Converts USDC → wrapped $M → $M → 0fns in a single transaction priced at 1 bps. This creates a permissioned position tied to the client’s wallet and initializes the fee parameters.
• Withdrawal:
  
  • Reverses the flow 0fns → $M → wrapped $M → USDC, releasing stablecoins back to the client. Before executing a withdrawal, Dfns ensures all pending earnings are realized and distributed.

Allocations API

To make Allocations developer-friendly, Dfns exposes a full Allocations API for integrating M0 and future protocols into client applications. Endpoints:

• GET /allocations: Lists allocation positions, balances, and accruals per wallet.
• POST /allocations: Creates a new allocation position (deposit flow).
• POST /allocations/{allocationId}/actions: Initiates a withdrawal or additional deposit for an existing position.

The API supports quoting, deposit, withdrawal, and position monitoring, using Dfns’ policy engine to validate all operations in real time. Frontends can display live 0fns balances, accruals, and transaction history, while backend systems can reconcile all movements using webhook events and immutable logs.

Start building on Dfns today: app.dfns.io

Important disclosures

Dfns is a technology provider, not a financial service. Allocations and its integrations are technical access features, not investment products. Nothing in this release should be interpreted as financial advice, endorsement, or solicitation. Dfns integrates third-party protocols solely at the request of clients, and inclusion within Allocations does not imply recommendation or validation. We recommend always running your own due diligence and seek independent professional advice before allocating capital.