Securitize, Inc., the leading platform for tokenizing real-world assets, announced the launch of the Securitize Tokenized AAA CLO Fund (STAC), a tokenized fund dedicated to AAA-rated collateralized loan obligations (CLOs).

The fund has been developed in collaboration with BNY a global financial services company. Leveraging its deep expertise enabling the digital assets ecosystem, BNY will serve as custodian for the fund’s underlying assets. The fund will be sub-advised by BNY Investments, which oversees $2.1 trillion in assets under management including over $1.35 trillion in fixed income strategies.

The fund has a planned $100 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol that serves as a secure DeFi-to-Traditional Finance (“TradFi”) capital highway increasing capital efficiency, reducing friction, and unlocking access to diversified credit investment opportunities on and off-chain. Grove is a ‘Star’ within the decentralized Sky Ecosystem governance framework.  This allocation is pending governance approval.

“Grove is anchoring the Securitize Tokenized AAA CLO Fund with $100 million because high quality structured credit belongs on-chain,” said Sam Paderewski, Co‑Founder of Grove Labs. “AAA CLOs offer durable, floating rate exposure that institutions understand. Tokenizing that exposure improves distribution and settlement and moves our mission forward to connect institutional capital with real credit on-chain.”

With overall global CLO issuance exceeding $1.3 trillion,¹ Securitize and BNY are tapping into a significant opportunity to bring floating rate AAA exposures in the structured credit market to the on-chain investment arena. Through tokenization, the fund seeks to reach an important investor base and aims to reduce traditional operational frictions associated with institutional credit investments, including enabling faster and more flexible settlement mechanisms.

Eligible investors can subscribe to the Securitize Tokenized AAA CLO Fund directly through Securitize, with shares issued as digital tokens on Ethereum. These tokenized shares will offer fractional ownership and transparent recordkeeping through Securitize’s integrated Know Your Customer (KYC), Anti-Money Laundering (AML), and investor qualification and accreditation infrastructure.

“The AAA CLO market is under-represented in tokenization despite being one of the most consistently performing areas of credit and an important investment segment for clients looking for yield beyond money market funds,” said Carlos Domingo, CEO and Co-Founder of Securitize. “This fund changes that while also marking the beginning of Securitize and BNY’s tokenized collaboration. Our mission has always been to anticipate what institutions need next — and the launch of the Securitize Tokenized AAA CLO Fund is a major step in making high-quality credit more accessible, efficient, and transparent through digital infrastructure.”

The strategy employs a fundamentals-driven approach without the use of leverage. BNY Investments’ leading global structured credit team aims to generate attractive risk-adjusted returns by investing substantially all of the fund’s assets in U.S. dollar-denominated AAA-rated CLO tranches, selected from both the primary and secondary markets.

“Digital assets are a major area of innovation in the investment industry,” said Jose Minaya, Global Head of BNY Investments and Wealth. “For clients who are searching for yield, tokenization is a great way to improve access to high-quality credit in an efficient and transparent instrument. This Securitize solution combines the strengths of BNY, as an established financial infrastructure and investment provider, with deep knowledge of global securitization markets and capital structures. We look forward to supporting delivery of this sophisticated portfolio management capability into the digital assets ecosystem.”

Source: Securitize