Securitize & BNY Mellon Launch On-Chain Credit Fund for AAA-Rated CLOs
Securitize and BNY Mellon have partnered to launch an on-chain credit fund that tokenizes AAA-rated collateralized loan obligations (CLOs) on a public blockchain. The fund converts real-world structured loans into digital tokens, with BNY Mellon providing custody and portfolio management. Grove, an institutional credit protocol, is set to anchor the fund with a $100 million investment pending governance approval. This initiative aims to democratize access to high-quality structured credit, improve transparency and liquidity, and automate fund management via blockchain. It follows Securitize’s planned SPAC merger and comes as real-world asset tokenization accelerates, with over $35.5 billion in RWA on-chain and firms like Ondo Finance and Centrifuge expanding tokenized credit products.
Bullish
The launch of an on-chain credit fund for AAA-rated CLOs is likely to drive positive sentiment in the tokenization sector. By converting $1.3 trillion in structured credit into digital tokens, improving transparency and liquidity, and securing a $100 million anchor investment, this initiative attracts institutional and retail interest. In the short term, it may boost demand for RWA protocols and related assets; in the long term, it solidifies blockchain as a venue for high-grade credit markets, supporting broader market growth.