Grove plans $100M anchor into newly-launched Securitize Tokenized AAA CLO Fund (STAC), with services provided by BNY
Bringing AAA CLO exposure onchain with Securitize, BNY as custodian, and Insight as sub‑adviser.
By Sam Paderewski
Overview
Today Securitize announced the Securitize Tokenized AAA CLO Fund (STAC), a tokenized fund dedicated to AAA‑rated CLO tranches. The fund is developed with BNY serving as custodian and Insight, a BNY Investments firm, as sub‑adviser.
This is another practical step in Grove protocol’s continued mission to bridge traditional capital markets with decentralized ecosystems, and scale institutional credit onchain. Pending governance approval, Grove will anchor STAC with a $100 million allocation. Shares are issued as digital tokens on Ethereum and are available to eligible parties through Securitize.
At a glance
- Sponsor: Securitize
- Custodian: BNY
- Sub‑adviser: Insight, a BNY Investments firm
- Asset class: AAA‑rated CLO tranches
- Network: Ethereum
- Eligibility: Available to eligible investors through Securitize
- Grove participation: Planned $100M anchor, pending governance approval
Why this matters
AAA CLOs are a core building block for institutional balance sheets. Tokenizing that exposure improves distribution, operations, and settlement, and helps turn structured credit into working onchain exposure with the controls institutions expect. For Grove, anchoring STAC is a continued step in deploying capital into real-world yield opportunities while preserving the transparency and efficiency of onchain infrastructure.
What is STAC
STAC is a tokenized fund that aims to invest substantially all of the fund’s assets in U.S. dollar‑denominated AAA‑rated CLO tranches from both the primary and secondary markets. The strategy is fundamentals‑driven and does not add portfolio‑level leverage. Securitize provides investor onboarding and recordkeeping. BNY serves as custodian. Insight acts as sub‑adviser.
Grove’s role
Grove Foundation plans to anchor STAC with $100 million, subject to governance approval. The global CLO market exceeds $1.3 trillion as of late 2024. Bringing a familiar, floating rate instrument onchain is a practical step toward institutional credit at scale, aligned with Grove protocol’s mission to build the liquidity layer for onchain credit.
“Grove is anchoring the Securitize Tokenized AAA CLO Fund with $100 million because high quality structured credit belongs onchain. 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 onchain.” - Sam Paderewski, Co‑Founder, Grove Labs
Important information
This post is for informational and governance purposes only and does not constitute or form part of any offer, invitation, or solicitation to sell or purchase any security or investment product in the Cayman Islands, the United States, or any other jurisdiction. Any offering of the products referenced herein will be made, if at all, only to eligible investors in accordance with applicable laws, regulations, risk parameters and offering documentation. Neither Grove Foundation nor Grove Labs is the issuer, manager, or distributor of the products referenced herein, and neither provides investment advice or recommendations. Investing involves risk, including the possible loss of principal.
