NYLIM is the latest addition to the list of asset management giants working on tokenization, partnering with Centrifuge (CFG) to bring one of its high-yield corporate bond strategies on-chain.
For NYLIM, tokenization is less about launching a blockchain version of an existing fund and more about improving the way portfolios are assembled.
Sy said customized investment strategies often combine ETFs, bonds, private credit and other assets, making them complex to operate and difficult to scale for personalization.
“The ultimate goal is to embed customization within the assets themselves, rather than having them around the operations of different assets,” he said.
Tokenization also streamlines transfer agents, payments, and other back-office processes, potentially reducing costs and ultimately benefiting investors.
“If we can reduce that by 10 or 20 percent, that’s a better outcome for our clients,” Sy said.
DeFi is waiting
Mr. S said that stablecoins have become the first practical bridge to connect traditional financial institutions on-chain.
Stablecoin market has grown to over $300 billion and is increasingly used for cross-border payments
As banks, payment companies, and fintech companies adopt stablecoins for cross-border payments and treasury management, many will eventually seek institutional-grade tokenized assets that can earn yield instead of keeping balances in cash.
“Stablecoins have probably been one of the biggest unlocks in the last two years,” Sy said. “Stablecoin adoption was the gateway to bringing stablecoins on-chain.”
