Tokenization specialist Securitize has launched a tokenized credit fund in partnership with the $57 trillion financial services giant BNY Mellon, reflecting the rapidly growing appetite for real-world assets (RWA).
The new offering, named the Securitize Tokenized AAA CLO Fund (STAC), is available on the Ethereum network and aims to provide on-chain investors with exposure to collateralized loan obligations (CLOs), according to a press release issued on Wednesday.
BNY Mellon will serve as the custodian of the fund’s assets, while investment management responsibilities will be handled by Insight, a BNY subsidiary specializing in fixed income and structured credit strategies.
Adding significant momentum to the fund, Grove – the on-chain credit-focused capital allocator of DeFi protocol Sky (SKY) – plans to invest $100 million as an anchor investor, the release noted.
This initiative seeks to bring one of the most stable credit products onto blockchain rails, catering to the accelerating demand for tokenized assets. According to projections by Boston Consulting Group (BCG) and Ripple, the tokenized real-world asset market could surge to $18.9 trillion by 2033, up dramatically from just $35 billion today.
CLOs are structured financial instruments that bundle corporate loans into tranches with varying risk profiles. Among these, AAA-rated tranches are the most secure and offer floating-rate exposure, typically appealing to institutional investors. Historically, accessing these investments has been challenging or accompanied by slow settlement times.
By tokenizing the fund’s shares, Securitize aims to overcome these hurdles, enabling faster settlement, enhanced distribution, and easier fractional ownership for investors.
“For clients who are searching for yield, tokenization is a great way to improve access to high-quality credit in an efficient and transparent instrument,” said Jose Minaya, the global head of BNY Investments and Wealth.
Securitize has already issued $4.5 billion worth of tokenized assets, including equities and funds such as BlackRock’s tokenized money market fund BUIDL.
In a significant move, the company filed plans this week to go public by merging with a Cantor Fitzgerald SPAC at a valuation of $1.25 billion. This would position Securitize as the first end-to-end tokenization firm to be listed in the U.S. market.
https://bitcoinethereumnews.com/ethereum/securitize-rolls-out-tokenized-credit-fund-with-bny-on-ethereum/?utm_source=rss&utm_medium=rss&utm_campaign=securitize-rolls-out-tokenized-credit-fund-with-bny-on-ethereum
Be First to Comment