Securitize, a platform for the tokenization of real-world assets, is set to launch a new tokenized fund aimed at providing investors with access to AAA-rated collateralized loan obligations on the blockchain. This initiative is a collaborative effort with the global investment bank BNY Mellon.
According to an announcement made on Wednesday, BNY Mellon will oversee the security of the fund’s underlying assets, while one of its subsidiaries will manage the portfolio.
With more than $1.3 trillion in global collateralized loan obligations issued, Securitize and BNY’s objective is to facilitate the entry of AAA-rated floating-rate credit onto the blockchain.
Subject to governance approval within the Sky Ecosystem, Grove, an institutional-grade credit protocol, is anticipated to anchor the fund with a substantial allocation of $100 million.
Tokenization involves converting tangible assets like stocks, real estate, or debts into digital tokens that are registered on a blockchain.
CEO Carlos Domingo highlighted the launch as “a significant advancement in making premium quality credit more accessible, efficient, and transparent through the use of digital infrastructure.”
This follows Domingo’s comments made to CNBC on October 28, revealing plans for Securitize to go public through a merger with Cantor Equity Partners II, Inc.
Surge in Financial Products Tokenization
As the trend of tokenizing real-world assets gains momentum, with over $35.5 billion now represented on the blockchain, the process is expanding to encompass a wider array of traditional financial instruments.
In January, Ondo Finance announced the launch of a tokenized U.S. Treasury Fund on the XRP Ledger, providing access to institutional-grade government bonds with the potential to redeem holdings using stablecoins. This fund became operational in June.
In July, Grove formed a partnership with Centrifuge to introduce two tokenized funds on the Avalanche blockchain.
That same month, Centrifuge collaborated with S&P Dow Jones Indices to bring the S&P 500 Index onto the blockchain, marking a first for this benchmark.
Related: Tokenization platform tZero eyes 2026 IPO amid surge in crypto listings
