BNY, the Wall Street custody giant, and the Securitize platform have teamed up to tokenize AAA-rated Collateralized Loan Obligations (CLOs). This new vehicle will allow qualified investors to access digital exposures to top-tier credit instruments. Under the agreement, BNY will act as custodian for the underlying loans, while one of its subsidiaries will manage the fund.
The initiative seeks to transform a pillar of structured finance, a global CLO market exceeding $1.3 trillion. The tokenization of these assets aims to reduce costs, accelerate settlements, and democratize access to high-quality credit products. This move adds to the trend of tokenizing real-world assets (RWA), a sector that has already surpassed $35 billion in value.
To boost the launch, the Grove credit protocol plans a $100 million anchor investment, pending approval, to provide liquidity. This milestone highlights the maturation of tokenization, moving from an experiment to a new financial foundation. Markets will monitor the adoption of this fund and Securitize’s upcoming IPO in the U.S., as it is set to become one of the first blockchain issuers to be listed.
Source: https://securitize.io/learn/press/Securitize-Launches-Tokenized-AAA-CLO-Fund-with-BNY
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