In a major milestone for real-world asset tokenization, Securitize, Inc. has unveiled the Securitize Tokenized AAA CLO Fund (STAC), a first-of-its-kind digital fund focused on AAA-rated collateralized loan obligations (CLOs). The initiative, developed in collaboration with BNY, marks a significant step toward integrating structured credit products into the onchain financial ecosystem.
Institutional-Grade Credit Meets Blockchain Infrastructure
Under the new partnership, BNY will serve as custodian of the fund’s underlying assets while BNY Investments, which manages more than $2.1 trillion in assets (including $1.35 trillion in fixed income strategies), will act as sub-adviser. This collaboration leverages BNY’s traditional financial infrastructure and Securitize’s digital issuance technology to streamline how institutions access structured credit onchain.
The fund’s launch will also be supported by a proposed $100 million anchor investment from Grove, an institutional-grade credit protocol linking decentralized finance (DeFi) with traditional finance (TradFi). Grove’s governance approval is pending, but if finalized, the allocation will mark one of the largest onchain commitments to a tokenized credit fund to date.
High-quality structured credit belongs onchain. Tokenizing AAA CLOs improves distribution, settlement, and transparency, bridging institutional capital with real credit markets.
Sam Paderewski, Co-Founder of Grove Labs
A Major Push Toward Onchain Structured Credit
With global CLO issuance surpassing $1.3 trillion, the collaboration between Securitize and BNY opens the door for institutions to gain floating-rate exposure to top-rated credit through blockchain-based infrastructure. The fund aims to reduce operational inefficiencies and enable faster, programmable settlement, expanding access to one of the most stable yield segments in global finance.
Investors can subscribe directly via Securitize, with fund shares issued as digital tokens on Ethereum. These tokenized shares represent fractionalized ownership and incorporate Securitize’s KYC, AML, and accreditation infrastructure, ensuring regulatory compliance while maintaining full transparency onchain.
Making High-Quality Credit Accessible and Transparent
The AAA CLO market has been largely absent from the tokenization wave, despite its strength and consistency. With BNY’s support, we’re bringing institutional-grade credit onchain in a way that’s both compliant and efficient. This fund is a milestone in our mission to make traditional finance more accessible through digital infrastructure.
The AAA CLO market has been largely absent from the tokenization wave, despite its strength and consistency. With BNY’s support, we’re bringing institutional-grade credit onchain in a way that’s both compliant and efficient. This fund is a milestone in our mission to make traditional finance more accessible through digital infrastructure.
Carlos Domingo, CEO and Co-Founder of Securitize
The fund’s investment strategy, managed by BNY Investments’ global structured credit team, will focus on U.S. dollar-denominated AAA-rated CLO tranches across both primary and secondary markets. The approach remains fundamentals-driven and unleveraged, prioritizing yield stability and capital preservation.
Tokenization Expands Institutional Access
Jose Minaya, Global Head of BNY Investments and Wealth, highlighted the growing convergence of traditional and digital markets:
Tokenization is transforming how investors access high-quality credit. By combining BNY’s infrastructure and Securitize’s blockchain expertise, we’re delivering institutional-grade portfolio management in an efficient, transparent, and digital format.
Jose Minaya, Global Head of BNY Investments and Wealth
The Securitize Tokenized AAA CLO Fund represents one of the clearest examples yet of how tokenization is reshaping institutional finance, bridging onchain and offchain markets while creating new avenues for yield, transparency, and efficiency.