Credit on the Blockchain: A New Way to Invest

Securitize, a company specializing in tokenization, has launched a new fund on the Ethereum network. This fund, called the Securitize Tokenized AAA CLO Fund (STAC), focuses on collateralized loan obligations (CLOs). These are bundles of corporate loans divided into different risk levels. The safest ones, rated AAA, usually attract big investors. BNY, a massive financial services company, is handling the fund's assets. Meanwhile, Insight, a BNY subsidiary, is managing the investments. Grove, part of the DeFi protocol Sky (SKY), plans to invest $100 million in this fund. The goal is to make credit products more accessible on the blockchain. Right now, these investments are often hard to get or take a long time to settle. Tokenizing the fund's shares could speed things up and make it easier to own a piece of the fund. Jose Minaya, the global head of BNY Investments and Wealth, thinks tokenization is a great way to access high-quality credit. He believes it offers efficiency and transparency. Securitize has already issued $4. 5 billion in tokenized assets, including equities and funds. They even have a tokenized money market fund with BlackRock called BUIDL. Now, they're planning to go public by merging with a Cantor Fitzgerald SPAC. This move could make them the first U. S. listed end-to-end tokenization firm. The demand for tokenized real-world assets (RWAs) is growing fast. BCG and Ripple predict this market could reach $18. 9 trillion by 2033. Currently, it's at $35 billion. This new fund is a step towards bringing more stability and accessibility to credit products on the blockchain.