Grove Plans $100M Anchor for New Institutional Investment Vehicle
New York and Miami — Securitize, Inc., the leading platform for tokenizing real-world assets, today announced the launch of the Securitize Tokenized AAA CLO Fund (STAC), a tokenized fund dedicated to AAA-rated collateralized loan obligations (CLOs).
The fund has been developed in collaboration with BNY (NYSE: BK), a global financial services company. Leveraging its deep expertise enabling the digital assets ecosystem, BNY will serve as custodian for the fund’s underlying assets. The fund will be sub-advised by BNY Investments, which oversees $2.1 trillion in assets under management including over $1.35 trillion in fixed income strategies.
The fund has a planned $100 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol that serves as a secure DeFi-to-Traditional Finance (“TradFi”) capital highway increasing capital efficiency, reducing friction, and unlocking access to diversified credit investment opportunities on and off-chain. Grove is a 'Star' within the decentralized Sky Ecosystem governance framework. This allocation is pending governance approval.
“Grove is anchoring the Securitize Tokenized AAA CLO Fund with $100 million because high quality structured credit belongs on-chain,” said Sam Paderewski, Co‑Founder of Grove Labs. “AAA CLOs offer durable, floating rate exposure that institutions understand. Tokenizing that exposure improves distribution and settlement and moves our mission forward to connect institutional capital with real credit on-chain.”
With overall global CLO issuance exceeding $1.3 trillion,1 Securitize and BNY are tapping into a significant opportunity to bring floating rate AAA exposures in the structured credit market to the on-chain investment arena. Through tokenization, the fund seeks to reach an important investor base and aims to reduce traditional operational frictions associated with institutional credit investments, including enabling faster and more flexible settlement mechanisms.
Eligible investors can subscribe to the Securitize Tokenized AAA CLO Fund directly through Securitize, with shares issued as digital tokens on Ethereum. These tokenized shares will offer fractional ownership and transparent recordkeeping through Securitize’s integrated Know Your Customer (KYC), Anti-Money Laundering (AML), and investor qualification and accreditation infrastructure.
“The AAA CLO market is under-represented in tokenization despite being one of the most consistently performing areas of credit and an important investment segment for clients looking for yield beyond money market funds,” said Carlos Domingo, CEO and Co-Founder of Securitize. “This fund changes that while also marking the beginning of Securitize and BNY’s tokenized collaboration. Our mission has always been to anticipate what institutions need next — and the launch of the Securitize Tokenized AAA CLO Fund is a major step in making high-quality credit more accessible, efficient, and transparent through digital infrastructure.”
The strategy employs a fundamentals-driven approach without the use of leverage. BNY Investments’ leading global structured credit team aims to generate attractive risk-adjusted returns by investing substantially all of the fund’s assets in U.S. dollar-denominated AAA-rated CLO tranches, selected from both the primary and secondary markets.
“Digital assets are a major area of innovation in the investment industry,” said Jose Minaya, Global Head of BNY Investments and Wealth. “For clients who are searching for yield, tokenization is a great way to improve access to high-quality credit in an efficient and transparent instrument. This Securitize solution combines the strengths of BNY, as an established financial infrastructure and investment provider, with deep knowledge of global securitization markets and capital structures. We look forward to supporting delivery of this sophisticated portfolio management capability into the digital assets ecosystem.”
To learn more about the Securitize Tokenized AAA CLO Fund, visit www.securitize.io.
1 Bank of America Global Research as of September 30 2024. Includes U.S. and Europe CLOs.
Media contacts:
BNY
Jessica Greaney
Securitize
Tom Murphy
Important Information
Securities are offered through Securitize Markets, LLC, (“Securitize Markets”) a registered broker-dealer and member FINRA/SIPC. Securitize Markets, LLC, and Securitize Capital, an Exempt Reporting Adviser, are not involved in Real-World Asset (RWA) tokenization, a service provided by Securitize. Assets such as digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal.
Securitize, Inc. (Securitize) is a Delaware corporation. Securitize is a technology provider which, together with its affiliates, maintains an end-to-end web-based platform used by issuers for issuing securities, specifically including digital asset securities. Securitize is not a registered broker-dealer.
Securitize, LLC is a transfer agent registered with the U.S. Securities and Exchange Commission. Securitize Markets also operates Securitize Markets ATS, an alternative trading system. Securitize Capital, LLC is an exempt reporting adviser filed with the State of Florida.
Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every shareholder. Private investments are generally an illiquid asset class; shareholders cannot sell their funds when they want to without potentially facing high losses. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.
About Securitize
Securitize, the leader in tokenizing real-world assets with $4B+ AUM (as of May 14, 2025), is bringing the world on-chain through tokenized funds in partnership with top-tier asset managers, such as Apollo, BlackRock, Hamilton Lane, KKR, and others. Securitize, through its subsidiaries, is a SEC-registered broker-dealer, digital transfer agent, fund administrator, and operator of a SEC-regulated Alternative Trading System (ATS). Securitize has also been recognized as a 2025 Forbes Top 50 Fintech company.
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About BNY
BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For more than 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of September 30, 2025, BNY oversees $57.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY has been named among Fortune’s World’s Most Admired Companies and Fast Company’s Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.
About Grove
Grove is an institutional-grade credit infrastructure DeFi protocol designed to serve as the liquidity engine of Decentralized Finance. Incubated by Grove Labs as a Star within the decentralized Sky Ecosystem governance framework, Grove enables protocols, crypto-native organizations, and individual users to access institutional-grade yield. To learn more, visit grove.finance, X, and LinkedIn.
About Grove Labs
Grove Labs, a subsidiary of Steakhouse Financial, is a blockchain research and development organization dedicated to architecting the next generation of decentralized credit infrastructure. Co-founded by Mark Phillips, Kevin Chan, and Sam Paderewski, the team has facilitated over $5 billion of on-chain capital allocations and brings deep expertise from both traditional and decentralized finance.
About the Sky Ecosystem
Sky, formerly known as MakerDAO, is a decentralized protocol with the stablecoin USDS at its core. The protocol features Sky tokens (USDS, SKY), the Sky Savings Rate (SSR), Sky Token Rewards (STRs), SKY Staking, and more.
Sky Protocol is governed by a decentralized community and structured around two foundational frameworks: the Sky Agent Framework, which enables autonomous on-chain agents and allows founders to create Sky Stars, independent protocol units designed to foster fast-moving innovation at the margins of the ecosystem; and the Sky Atlas, a living, comprehensive set of governance rules developed through proposals and decentralized voting.
For more information about Sky Protocol, visit sky.money, Discord, Forum, or X.