BNY and Securitize Tokenize Credit Assets, Tapping $18.9T Market Opportunity

Securitize, a leading tokenization specialist, has launched the Securitize Tokenized AAA CLO Fund (STAC) on the Ethereum blockchain, partnering with Bank of New York Mellon (BNY) to custody assets and provide fund services, according to a CoinDesk report. The initiative aims to bring AAA-rated collateralized loan obligations (CLOs)-a type of securitized corporate debt-into the blockchain ecosystem, capitalizing on growing demand for tokenized real-world assets (RWAs). The fund, managed by Insight, a BNY subsidiary, will offer investors exposure to high-quality credit tranches with improved liquidity and settlement efficiency.

Grove, a DeFi protocol capital allocator, has committed $100 million as an anchor investor, pending governance approval. This move aligns with broader market projections: Boston Consulting Group and Ripple estimate the RWA tokenization market could expand from $35 billion today to $18.9 trillion by 2033. CLOs, which bundle corporate loans into risk-tiered tranches, have traditionally been illiquid and slow to settle. Tokenizing these instruments could enable fractional ownership and faster onchain transactions, addressing longstanding accessibility challenges.

BNY's involvement underscores the bank's strategic pivot toward blockchain infrastructure. "Tokenization is a great way to improve access to high-quality credit in an efficient and transparent instrument," said Jose Minaya, BNY Investments and Wealth's global head. The partnership builds on BNY's prior role in tokenizing money-market funds, such as BlackRock's BUIDL, and reflects a broader trend of traditional financial institutions adopting blockchain for asset management, according to a Bloomberg Law report.

Meanwhile, Securitize is accelerating its public market ambitions. The firm filed to go public via a $1.25 billion SPAC merger with Cantor Fitzgerald, aiming to become the first U.S.-listed end-to-end tokenization company, according to The Block. The deal, which would rename the combined entity Securitize Corp. and trade under the ticker SECZ, includes a $225 million private investment in public equity (PIPE) from Arche, Borderless Capital, and other institutional investors. Securitize's CEO, Carlos Domingo, emphasized the move as a "defining moment" for democratizing capital markets through tokenization.

The company has already tokenized $4.5 billion in assets, including BlackRock's BUIDL fund, and estimates a $19 trillion opportunity in tokenizing equities, fixed income, and alternatives. By vertically integrating services like transfer agency and fund administration, Securitize positions itself as a comprehensive infrastructure provider for the evolving RWA ecosystem.

As the tokenization sector matures, STAC and similar initiatives could redefine institutional investing by bridging legacy credit markets with blockchain's programmability. With BNY's custodial expertise and Securitize's technical capabilities, the partnership highlights the growing convergence of traditional finance and decentralized infrastructure.