In a development that bridges Wall Street’s traditional credit market with blockchain technology, Securitize and BNY have jointly introduced the Securitize Tokenized AAA CLO Fund (STAC). The new vehicle represents the first onchain fund dedicated to AAA-rated collateralized loan obligations (CLOs), signaling a significant step toward bringing structured credit products to blockchain-based infrastructure.
The initiative marks a milestone in the integration of regulated financial instruments with decentralized technology. Backed by Grove Finance, which is providing $100 million as an anchor investment, the STAC fund aims to simplify institutional access to high-quality CLOs denominated in U.S. dollars. By placing these debt instruments on blockchain rails, the collaboration seeks to enhance liquidity, transparency, and operational efficiency for qualified investors while maintaining full regulatory compliance.
Grove Finance’s involvement demonstrates strong institutional confidence in tokenized credit markets. Known for its focus on institutional-grade credit infrastructure, Grove’s participation provides substantial capital backing to the fund’s debut, establishing STAC as a credible and well-capitalized entry point for blockchain-integrated fixed-income investing.
BNY, serving as custodian, is extending its participation beyond asset safeguarding. Its investment division, BNY Investments, which manages approximately $2.1 trillion in assets, will act as sub-adviser to the fund. The firm intends to leverage its long-standing expertise in structured credit to ensure that the traditional due diligence and oversight frameworks apply effectively within the new digital context.
Jose Minaya, Global Head of BNY Investments & Wealth, commented that digital assets are becoming a pivotal area of innovation within the investment industry. He conveyed that tokenization presents a transformative opportunity to democratize access to premium credit products while ensuring efficiency, transparency, and investor protection.
We’ve partnered with @BNYglobal to launch the first tokenized fund focused on AAA-rated CLOs, bringing institutional-grade structured credit onchain with @grovedotfinance as an anchor investor. pic.twitter.com/bzS3wcQyoT
— Securitize (@Securitize) October 29, 2025
The collaboration illustrates how established financial institutions are cautiously but steadily advancing into tokenization. With global issuance of CLOs exceeding $1 trillion, the emergence of blockchain-enabled vehicles like STAC reflects a growing institutional appetite for programmable and transparent exposure to credit markets. Unlike many experimental blockchain initiatives, STAC combines the credibility of major financial custodianship with blockchain’s automation and auditability—bridging the gap between regulatory rigor and digital innovation.
3/ STAC invests in AAA-rated CLOs from both primary and secondary markets using a fundamentals-driven approach, targeting stable, risk-adjusted returns without leverage.
— Securitize (@Securitize) October 29, 2025
For Securitize, the launch of STAC aligns closely with its broader goal of “tokenizing the world,” a vision centered on converting conventional financial assets into blockchain-native instruments. By offering compliant and efficient access to structured products, the company aims to redefine how institutional investors engage with credit markets. The firm’s digital infrastructure provides a foundation for secure, regulated participation in blockchain finance—enabling tokenized shares, funds, and bonds to operate within existing financial frameworks.
BNY’s participation reinforces a growing consensus among global asset managers that blockchain represents the next evolution in financial services, not a disruption to be resisted. The partnership demonstrates that tokenization is increasingly being adopted as a means of improving market access and operational resilience rather than as an alternative to traditional systems.
As tokenized finance continues to expand, the Securitize Tokenized AAA CLO Fund stands as one of the most tangible examples of institutional adoption. By combining the trust of legacy financial oversight with the speed and transparency of decentralized technology, the fund underscores a future where traditional and digital finance operate in unison—offering investors a modern gateway to high-quality credit exposure with the efficiency of blockchain infrastructure.