The Securitize platform and BNY Mellon introduced a new tokenized fund focused on investments in AAA-rated collateralized loan obligations.
American FinTech company Securitize, specializing in the tokenization of real-world assets (RWA), announced the launch of the Securitize Tokenized AAA CLO Fund (STAC), a tokenized fund providing institutional investors access to AAA-rated collateralized loan obligations (CLO).
Asset management and custody for the fund will be handled by BNY Mellon, one of the largest banks and custodians in the world, through its BNY Investments division, which oversees $2.1 trillion in assets, including $1.35 trillion in fixed-income instruments. A key investor in the fund will be DeFi protocol Grove, which plans to invest $100 million.
STAC will become the first product combining BNY’s infrastructure with Securitize’s digital solutions to transfer structured loans onto a blockchain network. The fund’s strategy will rely on fundamental analysis and doesn’t involve leverage. Fund shares will be issued as tokens on Ethereum. Investors will be able to purchase shares directly through Securitize.
According to Sam Paderewski, Co‑Founder of Grove Labs, tokenizing high-quality structured credit will simplify settlement processes and increase capital allocation efficiency. Jose Minaya, Global Head of BNY Investments and Wealth, emphasized that tokenization will enhance transparency and broaden access to high-quality debt instruments.
Bank of America data shows that the global CLO market exceeds $1.3 trillion, while digital solutions account for a minimal share of this segment.
Carlos Domingo, CEO of Securitize, noted that the launch of STAC gives institutional clients access to a tool comparable in yield to the equity market but with a higher level of credit quality.
Previously, institutional investors gained the ability to use tokenized money market funds as collateral for loans. Analysts note that more than half of the global RWA market consists of private loans and debt obligations.
