Theo becomes first crypto-native investor in Fidelity tokenized fund

In parallel, New York Life Investment Management has introduced its first tokenized fund, focusing on a U.S. high-yield corporate bond strategy. This initiative is a collaboration with Centrifuge. The new fund aims to provide eligible investors with on-chain access to the high-yield corporate bond strategy. Transactions within this fund will be settled using USDC, a stablecoin, further integrating blockchain technology into investment management.

The emergence of these tokenized funds from major financial institutions like Fidelity and New York Life highlights a broader trend towards the tokenization of real-world assets. This process involves representing traditional financial instruments, such as bonds and liquidity funds, as digital tokens on a blockchain. The benefits include increased efficiency, transparency, and accessibility for investors, particularly for those seeking to engage with these markets via digital rails. The involvement of crypto-native platforms like Theo and blockchain infrastructure providers like Centrifuge suggests a maturing ecosystem where traditional and digital finance players are increasingly collaborating.