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1 hour ago
Bullish

NYLIM and Centrifuge tokenize high-yield bond strategy on Avalanche

2 min

New York Life Investment Management and Centrifuge will tokenize a US high-yield corporate bond strategy on Avalanche. Subscriptions and redemptions use USDC. Access is limited to qualified institutional buyers.

What is being launched

  • Asset: US high-yield corporate bond strategy managed by NYLIM, an asset manager with more than $300 billion under management.
  • Chain and currency: Built on Avalanche; investor flows in USDC.
  • Scope: Institutional product. Qualified institutional buyers only.

Why it matters

  • Infrastructure shift: Centrifuge provides tokenization rails to issue, record ownership, and settle fund interests on a public blockchain.
  • Operational effects: Blockchain settlement and USDC rails can streamline cash-to-fund movements and operate outside traditional settlement windows.
  • Asset expansion: Tokenized Treasuries led early adoption. Moving high-yield corporate credit onchain expands tokenization into higher-risk, higher-return credit with active management.
  • Institutional adoption: Adds another established manager experimenting with issuing and servicing conventional investment products on public chains.

Limits and scope

  • Access constraints: Participation restricted to qualified institutional buyers. Retail access is not included.
  • Use case: Tokenization focuses on institutional efficiency rather than creating a retail crypto exposure to high-yield bonds.

Source: Primary Source