- New York Life Investment Management is making its first move in asset tokenization.
- The move is enabled by a partnership with the Centrifuge institutional-grade protocol.
- Both parties have combined to deliver a High-Yield Corporate Bond Strategy (HYB).
New York Life Investment Management has reportedly entered the tokenization space through its latest partnership with Centrifuge, an institutional-grade protocol that brings real-world assets (RWAs) onto the blockchain.
On Tuesday, the firms announced the launch of the NYLIM Anemoy US High Yield Corporate Bond Segregated Portfolio (ticker: HYB). That marks MYLIM’s first tokenized offering and one of the high-yield corporate bond strategies on-chain.
The firms noted that the tokenized fund will provide eligible investors access to MYLIM’s established institutional high-yield strategy through Centifuge’s platform. They can do so via subscriptions and redemptions settled in Circle’s USDC stablecoin.
Centrifuge CEO Bhaji Illuminati expressed excitement over the latest partnership, describing New York Life as one of the first major insurance companies to move into tokenization. According to him, both parties have been working closely over the last six months to identify opportunities they can explore.
Centrifuge’s Growing Status Among Wall Street Firms
Notably, Centrifuge has become a mainstay among Wall Street firms venturing into tokenization. Hence, New York Life is joining a growing list of partners for the institutional-grade blockchain protocol. The firm works with Apollo Global Management and Janus Henderson, among other notable partners.
The Wall Street partnerships with Centrifuge are supporting products such as private credit funds, treasury bill strategies, and a flagship AAA-rated CLO portfolio with more than $700 million in assets under management. Meanwhile, New York Life has approximately $807 billion in AUM, potentially qualifying as Centifuge’s largest partner to date.
What to Expect From the Partnership
Thomas Sy, NYLIM’s Head of Multi-Asset Solutions, noted that tokenization represents a compelling evolution to access, manage, and distribute investment solutions across public and private markets. According to Sy, his company is exploring opportunities where blockchain-enabled infrastructure can complement its existing platform and deepen its value delivery, as investor demand continues to grow around transparency, efficiency, and broader market participation.
In the meantime, the firms highlighted that HYP’s underlying portfolio, investment process, and risk management will remain under NYLIM control. The reason for this is to ensure continuity with its traditional approach, while Centrifuge will focus on providing the tokenization technology.
Related: Tokenized Treasuries on Ethereum Hit Record $8B Market Cap
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