Securitize and BNY Mellon Introduce Tokenized Fund Backed by Structured Credit

Securitize and BNY Mellon Introduce Tokenized Fund

Summary: Securitize, a platform for tokenizing real-world assets, has announced a new tokenized fund that will provide investors with access to AAA-rated collateralized loan obligations on the blockchain. This initiative, developed in collaboration with BNY Mellon, aims to enhance the accessibility and efficiency of high-quality credit through digital technology.

Key Takeaways

Securitize has launched a tokenized fund for AAA-rated collateralized loan obligations.
The fund is developed in partnership with BNY Mellon, which will oversee the assets.
A $100 million investment is expected from Grove, pending governance approval in the Sky Ecosystem.
Tokenization allows real-world assets to be represented as digital tokens on a blockchain.
The move highlights a growing trend toward the tokenization of financial products.

Introduction to the Tokenized Fund

Securitize, a leader in real-world asset tokenization, has introduced a groundbreaking tokenized fund aimed at providing investors access to AAA-rated collateralized loan obligations on the blockchain. This innovative fund is the result of a partnership with BNY Mellon, a global investment bank. According to the announcement made on Wednesday, BNY Mellon will hold the underlying assets of the fund and manage its portfolio through one of its subsidiaries.

The global issuance of collateralized loan obligations has reached over $1.3 trillion, and both Securitize and BNY Mellon are working to bring AAA-rated floating-rate credit onto the blockchain.

Pending governance approval within the Sky Ecosystem, Grove, a robust credit protocol, plans to invest $100 million in this fund, thereby anchoring its initial offerings.

Understanding Tokenization

Tokenization is a process where real-world assets—including stocks, real estate, or debt—are converted into digital tokens that are then recorded on a blockchain. Carlos Domingo, CEO of Securitize, emphasized that the launch of this fund is a significant advancement toward making high-quality credit more accessible, efficient, and transparent through digital infrastructure.

This announcement comes shortly after Domingo's remarks to CNBC on October 28, where he revealed plans for Securitize to go public via a merger with Cantor Equity Partners II, Inc., a blank-check company.

Growth of Tokenized Financial Products

As the tokenization of real-world assets continues to gain pace, more than $35.5 billion is now represented on-chain, according to RWA.xyz. This trend is expanding to encompass a wider variety of traditional financial instruments.

In January, Ondo Finance announced its plan to launch a tokenized US Treasury Fund on the XRP Ledger, allowing investors to access high-quality government bonds with the flexibility to redeem holdings using stablecoins. This fund officially launched in June.

Meanwhile, in July, Grove collaborated with Centrifuge, a blockchain infrastructure provider, to introduce two Janus Henderson tokenized funds on the Avalanche blockchain. During the same month, Centrifuge also made headlines by partnering with S&P Dow Jones Indices to tokenize the S&P 500 Index, marking the first instance of this benchmark being brought onto the blockchain.

Related Article: Tokenization Platform tZero Eyes 2026 IPO Amid Surge in Crypto Listings