BNY and Securitize Transform Credit Assets into Tokens, Unlocking Access to $18.9 Trillion Market

Securitize, a prominent player in the tokenization space, has introduced the Securitize Tokenized AAA CLO Fund (STAC) on the

blockchain. The company has teamed up with Bank of (BNY) to handle asset custody and provide fund-related services, as reported by . This project is designed to bring AAA-rated collateralized loan obligations (CLOs)—a form of securitized corporate lending—onto the blockchain, tapping into the increasing interest in tokenized real-world assets (RWAs). Managed by Insight, a BNY affiliate, the fund will give investors access to premium credit tranches with enhanced liquidity and more efficient settlements.

Grove, a DeFi protocol focused on capital allocation, has pledged $100 million as a lead investor, subject to governance approval. This step reflects broader industry forecasts: Boston Consulting Group and Ripple predict the RWA tokenization sector could grow from $35 billion currently to $18.9 trillion by 2033. Traditionally, CLOs—which package corporate loans into tranches based on risk—have been difficult to trade and slow to settle. By tokenizing these assets, it becomes possible to offer fractional ownership and quicker on-chain transactions, helping to solve long-standing barriers to access.

BNY's participation highlights the bank's strategic shift toward blockchain technology. "Tokenization is an excellent method to broaden access to top-tier credit through a transparent and efficient vehicle," stated Jose Minaya, global head of BNY Investments and Wealth. This collaboration builds on BNY's previous involvement in tokenizing money-market funds, such as BlackRock's BUIDL, and signals a wider movement among established financial institutions to leverage blockchain for asset management, according to a

.

At the same time, Securitize is pushing forward with its plans for public markets. The company has filed to become publicly traded through a $1.25 billion SPAC merger with Cantor Fitzgerald, seeking to be the first fully tokenization-focused firm listed in the U.S., as reported by

. If completed, the merged company will be called Securitize Corp. and listed under the ticker SECZ, with a $225 million PIPE investment from Arche, Borderless Capital, and other major investors. Securitize CEO Carlos Domingo described this as a "pivotal milestone" in making capital markets more accessible through tokenization.

The firm has already tokenized $4.5 billion in assets, including BlackRock's BUIDL fund, and sees a $19 trillion potential in tokenizing stocks, bonds, and alternative assets. By offering integrated services such as transfer agency and fund administration, Securitize is establishing itself as a key infrastructure provider for the growing RWA market.

As tokenization continues to evolve, STAC and similar projects could transform institutional investment by connecting traditional credit markets with the programmable features of blockchain. The collaboration between BNY's custodial know-how and Securitize's technical strengths underscores the increasing intersection of conventional finance and decentralized technology.