Securitize, a platform for tokenizing real-world assets, has launched a tokenized fund aimed at providing investors access to AAA-rated collateralized loan obligations on the blockchain.
The fund is in collaboration with global investment bank BNY Mellon. According to the announcement on Wednesday, BNY will oversee the fund’s underlying assets, while a subsidiary of the bank will manage its portfolio.
With global issuance of collateralized loan obligations exceeding $1.3 trillion, Securitize and BNY intend to bring AAA-rated floating-rate credit onchain, as stated by the company.
Pending governance approval within the Sky Ecosystem, Grove, an institutional-grade credit protocol, plans to support the fund with a $100 million allocation.
Tokenization refers to converting real-world assets like stocks, real estate, or debt into digital tokens recorded on a blockchain.
Securitize CEO Carlos Domingo remarked that the launch “is a significant step in making high-quality credit more accessible, efficient, and transparent through digital infrastructure.”
The announcement follows Domingo’s comments to CNBC on October 28, revealing intentions for Securitize to go public through a merger with the blank-check company Cantor Equity Partners II, Inc.
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Tokenization of financial products surges
As tokenization of real-world assets accelerates — with over $35.5 billion now represented onchain, according to RWA.xyz — the process is swiftly expanding to include a wider array of traditional financial instruments.
In January, Ondo Finance announced plans for a tokenized US Treasury Fund on the XRP Ledger, enabling investors to gain exposure to institutional-grade government bonds with the option to redeem through stablecoins. The fund launched in June.
In July, Grove partnered with Centrifuge, a blockchain infrastructure provider, to create two Janus Henderson tokenized funds on Avalanche.
That same month, Centrifuge collaborated with S&P Dow Jones Indices to tokenize the S&P 500 Index, marking the first instance of the benchmark being brought onchain.
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