New CLO Fund Comes to Blockchain Through BNY, Securitize Deal

Bank of New York Mellon Corp.and Securitize Inc. have partnered to bring collateralized loan obligations onto the blockchain, the latest example of traditional Wall Street businesses moving onto a system built for cryptocurrency.

The Securitize Tokenized AAA CLO Fund, which launches on Wednesday, is dedicated to CLOs with top-notch credit ratings. It will be represented by a token on the Ethereum blockchain and BNY will custody the assets.

The tokenization trend kicked off with money-market funds, such as BlackRock Inc.’s BUIDL. But as interest rates started to decline, the industry has lately moved onto other, higher-yielding assets to ...