Connecting DeFi with Traditional Finance: BNY and Securitize Introduce a Tokenized Credit Fund
- BNY Mellon and Securitize launch STAC, the first Ethereum-based tokenized AAA CLO fund, combining BNY's custodial expertise with blockchain infrastructure to enhance institutional liquidity and transparency. - Grove's $100M pending investment aims to bridge DeFi and TradFi by enabling fractional ownership and faster settlement of high-quality credit instruments via tokenization. - CLOs, with $1.3T global issuance, represent prime tokenization candidates, as blockchain addresses traditional barriers like
The Bank of New York Mellon (BNY) has teamed up with tokenization expert Securitize to introduce the Securitize Tokenized AAA CLO Fund (STAC), an innovative financial offering that brings AAA-rated collateralized loan obligations (CLOs) onto the
BNY Investments, which oversees $2.1 trillion in assets, acts as sub-advisor for the fund and will safeguard the underlying assets using BNY’s digital asset services. Grove, a credit infrastructure protocol within the decentralized Sky ecosystem, is expected to make a $100 million anchor investment, pending governance approval, as reported by
Collateralized loan obligations, which group together corporate loans into tranches with varying risk levels, have been a mainstay in institutional investment portfolios. The highest-rated AAA tranches, known for their safety and liquidity, now benefit from blockchain-enabled tokenization. By issuing fund shares as tokens on Ethereum, STAC overcomes traditional challenges such as delayed settlements and restricted access, as reported by
Industry forecasts highlight the importance of this development. Boston Consulting Group and Ripple predict that the tokenized real-world asset (RWA) market could expand from $35 billion today to $18.9 trillion by 2033, as noted in a
This collaboration also underscores BNY’s strategic shift toward blockchain technology. After previously supporting tokenized money-market funds such as BlackRock’s BUIDL, the bank is now moving into structured credit. If Grove’s $100 million commitment is approved, it would further demonstrate the potential of tokenized credit markets, CoinDesk reported. Meanwhile, Securitize, which has already tokenized $4.5 billion in assets, is working toward a $1.25 billion SPAC merger that would make it the first U.S.-listed company focused on tokenization, according to Bitget.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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