Tokenization specialist Securitize has rolled out a tokenized credit fund with financial services giant BNY, worth $57 trillion, as the appetite for real-world assets (RWA) rapidly increases.
The Securitize Tokenized AAA CLO Fund (STAC), available on the Ethereum network, aims to provide on-chain investors exposure to collateralized loan obligations (CLOs), according to a press release published Wednesday.
BNY will act as custodian of the fund’s assets, while investment management will be handled by Insight, a BNY subsidiary focused on fixed income and structured credit strategies.
Grove, the on-chain credit-focused capital allocator of DeFi protocol Sky (SKY), plans to place $100 million in the fund as a lead investor, according to the release.
The offering aims to bring one of the most stable credit products onto blockchain as demand for tokenized assets accelerates. BCG and Ripple predict that the real-world tokenized asset (RWA) market could reach $18.9 trillion by 2033, up from $35 billion currently.
CLOs group business loans into tranches of different risk levels. The AAA rated tranches, the most secure, offer variable rate exposure which generally appeals to institutional investors.
Historically, these investments have been difficult to access or slow to realize. Tokenizing fund shares could change this by enabling faster settlement, improved distribution and easier fractional ownership.
“For clients seeking 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 in 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 valuation of $1.25 billion, with the aim of becoming the first end-to-end tokenization company listed in the United States.
Read more: Securitized tokenization company aims for public listing via SPAC deal at $1.25 billion valuation
