Tokenization specialist Securitize rolled out a tokenized credit fund with $57 trillion financial services giant BNY as appetite for real-world assets (RWA) grows rapidly.
The Securitize Tokenized AAA CLO Fund (STAC), available on the Ethereum network, aims to offer onchain investors exposure to collateralized loan obligations (CLOs), according to a press release on Wednesday.
BNY will act as a custodian for the fund’s assets, while investment management will be handled by Insight, a BNY subsidiary focused on fixed-rate and structured credit strategies.
Grove, the onchain credit-focused capital allocator of DeFi protocol Sky (SKY), plans to place $100 million in the fund as an anchor investor, according to the announcement.
The offering aims to bring one of the most stable credit products on blockchain rails as demand for tokenized assets accelerates. BCG and Ripple projected that the tokenized real-world asset (RWA) market could reach $18.9 trillion by 2033, up from $35 billion currently.
CLOs pool corporate loans into tranches with varying levels of risk. AAA-rated tranches, the safest, offer variable interest rate exposure that typically appeals to institutional investors.
Historically, these investments have been difficult to access or slow to settle. Tokenization of fund shares can change that by enabling faster settlement, improved distribution and easier shared ownership.
“For clients looking for yield, tokenization is a great way to improve access to high-quality credit in an efficient and transparent instrument,” said Jose Minaya, global head of BNY Investments and Wealth.
Securitize has issued $4.5 billion of tokenized assets such as stocks and funds, including BlackRock’s tokenized money market fund BUIDL.
The company this week filed plans to go public by merging with a Cantor Fitzgerald SPAC at a $1.25 billion valuation, with the goal of becoming the first U.S. publicly traded end-to-end tokenization company.
Read more: Tokenization firm Securitize aims for public listing via SPAC deal at $1.25bn valuation
