Securitize Rolls Out Tokenized Credit Fund with BNY on Ethereum

Core Insights - Securitize has launched a tokenized credit fund in partnership with BNY, targeting the growing demand for real-world assets (RWA) [1][3] - The Securitize Tokenized AAA CLO Fund (STAC) will provide on-chain investors access to collateralized loan obligations (CLOs) [1][3] - The tokenization of the fund aims to enhance accessibility, speed of settlement, and fractional ownership of traditionally hard-to-access investments [4] Company Overview - BNY will serve as the custodian for the fund's assets, while Insight, a BNY subsidiary, will manage investments [2] - Grove, a capital allocator from the DeFi protocol Sky, plans to invest $100 million as an anchor investor in the fund [2] Market Potential - The tokenized RWA market is projected to grow from $35 billion currently to $18.9 trillion by 2033 [3] - CLOs, which bundle corporate loans into various risk tranches, are particularly appealing to institutional investors due to their AAA-rated tranches offering floating-rate exposure [3] Technological Impact - Tokenization is expected to facilitate faster settlements, improved distribution, and easier fractional ownership of credit products [4] - Jose Minaya, global head of BNY Investments and Wealth, highlighted that tokenization enhances access to high-quality credit for yield-seeking clients [4] Securitize's Position - Securitize has issued $4.5 billion in tokenized assets, including a tokenized money market fund for BlackRock [5] - The company is pursuing a public listing through a merger with a Cantor Fitzgerald SPAC, aiming for a valuation of $1.25 billion [5][6]