Securitize has teamed up with BNY Mellon to introduce a tokenized fund that offers onchain access to AAA-rated collateralized loan obligations.
Summary
- BNY Mellon will oversee the safeguarding of the fund’s assets and manage its portfolio through one of its subsidiaries.
- Grove, a protocol for institutional credit, aims to support the fund with a $100 million allocation, pending authorization within the Sky Ecosystem.
- This initiative continues the rising trend of tokenizing real-world assets, following efforts like Ondo Finance’s tokenized U.S. Treasury fund on the XRP Ledger and Centrifuge’s collaboration with S&P Dow Jones Indices to bring the S&P 500 onchain.
Securitize, a prominent platform for RWA tokenization, has announced the creation of a tokenized fund offering onchain access to AAA-rated collateralized loan obligations (CLOs). This project is being developed in partnership with the global investment firm BNY Mellon.
In this collaboration, BNY Mellon will serve as custodian for the fund’s underlying assets, ensuring that they are securely managed, while a subsidiary of the bank will take charge of portfolio management. Grove—a blockchain-based institutional credit protocol—intends to anchor the fund with an initial $100 million allocation, pending approval within the Sky Ecosystem.
According to Carlos Domingo, CEO of Securitize, this initiative represents a significant step toward enhancing access to and transparency of high-quality floating-rate credit instruments through blockchain technology.
This partnership follows Securitize’s recent announcement regarding plans to go public via a merger with Cantor Equity Partners II, Inc., a special purpose acquisition company.
The establishment of this fund highlights the accelerating movement towards tokenizing real-world financial products. Earlier this year, Ondo Finance launched a tokenized U.S. Treasury fund on the XRP Ledger, enabling investors to hold and redeem exposure to government bonds via stablecoins. Simultaneously, Centrifuge gained attention by forming a partnership with S&P Dow Jones Indices to tokenize the S&P 500 Index, marking the first occasion of this benchmark being transitioned onchain.
