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
Partisan Stalemate Results in $14 Billion Losses and 42 Million Facing Hunger as Shutdown Hits 35 Days
- U.S. government shutdown hits 35 days, matching historical record as partisan gridlock disrupts services for millions. - 42 million Americans face food aid delays under SNAP, with states using emergency funds amid federal funding disputes. - Economy risks $7B-$14B loss as shutdown extends, with GDP growth projected to drop 1-2% depending on duration. - Air traffic delays and unpaid federal workers highlight human costs, while political leaders blame each other for stalemate. - Trump administration oppose
Bitcoin Updates: Ambiguous Fed Rate Direction Triggers Crypto Sell-Off, $1.2 Billion Liquidated
- Crypto markets saw $1.2B in liquidations as Bitcoin and Ethereum dropped 3% amid macroeconomic uncertainty and trader panic. - Top exchanges like Hyperliquid and HTX recorded massive losses, with high-profile traders suffering $15M-$33M in single-day wipeouts. - Fed's ambiguous rate-cut signals and Trump-Xi meeting failed to stabilize prices, while Coinbase's negative premium index highlighted U.S. selling pressure. - Despite 3-month lows for ETH and altcoins, analysts like Nick Ruck suggest Fed policy s
Ethereum News Update: Crucial Support and Resistance Clash for Ethereum: Bulls and Bears Face Off in Intense Showdown
- Ethereum's price hovers near $3,600–$3,750 support, with bulls targeting $4,000+ and bears warning of a $3,300 drop. - Technical indicators show neutral-to-bearish momentum, while on-chain data highlights $165B reserves and stablecoin strength. - A Binance 30,000 ETH order and Fed policy signals could drive volatility, with $4,000+ potentially unlocking $5,000–$6,000. - Key resistance at $4,100–$4,250 remains intact since mid-2025, requiring a breakout to confirm bullish momentum.
BCH Drops 1.9% on November 4 as Weekly and Monthly Declines Worsen
- Bitcoin Cash (BCH) fell 1.9% on Nov 4, with 8.3% weekly and 7.25% monthly losses, contrasting a 14.22% annual gain. - Technical indicators show mixed signals: oversold RSI hints at potential rebounds, but bearish MACD divergence suggests lingering downward momentum. - A backtest seeking 15%+ BCH spikes since 2022 failed due to no historical matches, prompting analysts to propose lower thresholds or alternative triggers like volume surges.
Trending news
MoreCrypto prices
More
