Connecting DeFi with Traditional Finance: BNY and Securitize Introduce a Tokenized Credit Fund
- BNY Mellon and Securitize launch STAC, the first Ethereum-based tokenized AAA CLO fund, combining BNY's custodial expertise with blockchain infrastructure to enhance institutional liquidity and transparency. - Grove's $100M pending investment aims to bridge DeFi and TradFi by enabling fractional ownership and faster settlement of high-quality credit instruments via tokenization. - CLOs, with $1.3T global issuance, represent prime tokenization candidates, as blockchain addresses traditional barriers like
The Bank of New York Mellon (BNY) has teamed up with tokenization expert Securitize to introduce the Securitize Tokenized AAA CLO Fund (STAC), an innovative financial offering that brings AAA-rated collateralized loan obligations (CLOs) onto the
BNY Investments, which oversees $2.1 trillion in assets, acts as sub-advisor for the fund and will safeguard the underlying assets using BNY’s digital asset services. Grove, a credit infrastructure protocol within the decentralized Sky ecosystem, is expected to make a $100 million anchor investment, pending governance approval, as reported by
Collateralized loan obligations, which group together corporate loans into tranches with varying risk levels, have been a mainstay in institutional investment portfolios. The highest-rated AAA tranches, known for their safety and liquidity, now benefit from blockchain-enabled tokenization. By issuing fund shares as tokens on Ethereum, STAC overcomes traditional challenges such as delayed settlements and restricted access, as reported by
Industry forecasts highlight the importance of this development. Boston Consulting Group and Ripple predict that the tokenized real-world asset (RWA) market could expand from $35 billion today to $18.9 trillion by 2033, as noted in a
This collaboration also underscores BNY’s strategic shift toward blockchain technology. After previously supporting tokenized money-market funds such as BlackRock’s BUIDL, the bank is now moving into structured credit. If Grove’s $100 million commitment is approved, it would further demonstrate the potential of tokenized credit markets, CoinDesk reported. Meanwhile, Securitize, which has already tokenized $4.5 billion in assets, is working toward a $1.25 billion SPAC merger that would make it the first U.S.-listed company focused on tokenization, according to Bitget.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Institutional integration and practical applications drive the rise of HBAR, AVAX, and BDAG altcoins
- Hedera's HBAR gains 7% on Nasdaq ETF debut, becoming third crypto ETF after Bitcoin and Ethereum, signaling institutional confidence. - Avalanche's AVAX secures $638M in tokenized Treasurys and attracts Wyoming's FRNT stablecoin, but struggles with $19.66 price amid market volatility. - BlockDAG (BDAG) raises $432M pre-launch with 312K+ holders, positioning as potential 2025 breakout via $0.05 listing target and live Layer-1 network. - Market shifts toward utility-driven altcoins like HBAR's AI governanc
Bitcoin News Update: Hong Kong Cautions That DAT Premiums May Disappear Suddenly, Triggering a Wave of Selling
- DAT strategy stocks like MSTR and meme DATs face sharp sell-offs, with MSTR down 53% and major meme DATs losing over 80% as investor confidence wanes. - Hong Kong regulators warn DAT premiums (e.g., mNAV ratios) could vanish rapidly under stricter oversight, citing MSTR's 3.6% YTD share decline despite Bitcoin gains. - U.S. crypto ETFs lost $552M in two days (Oct 29-30), with Fidelity's FBTC leading outflows, as Fed Chair Powell hinted 2025 rate cuts may end, deepening market uncertainty. - Bitcoin and E
Dogecoin News Today: Meme Coin Joins Forces with Defense: Former Air Force Leader Commits $53M to Dogecoin
- A U.S. Air Force commander invested $53M in Dogecoin, signaling growing institutional confidence in the meme coin despite its volatility. - Recent whale activity and a 20% surge in DOGE trading volume highlight increased market speculation and liquidity. - The Dogecoin Treasury's planned public listing could attract institutional investors, potentially stabilizing its price amid regulatory risks. - XRP's 7% weekly gain reflects broader crypto optimism, though technical indicators caution short-term trade
Bitcoin News Update: MicroStrategy's Bold Crypto Bet Falters as Shares Plunge 53% Due to Investor Skepticism
- MicroStrategy's stock plunged 53% as Bitcoin's 8% drop eroded $18B in market cap, linking its fate to crypto volatility. - The company's Bitcoin-centric strategy faces skepticism despite $74B in BTC holdings, with critics warning of unproven risk. - Macroeconomic headwinds, Fed policy uncertainty, and regulatory pressures amplified the selloff in crypto-linked equities. - Analysts split between bearish technical indicators and bullish S&P 500 inclusion potential, while CEO Phong Le maintains $150K BTC pr
Trending news
MoreCrypto prices
More
