Another asset manager is pivoting to the on-chain market. Neuberger Berman has officially launched its first tokenized bond fund, built in partnership with Securitize. This decision was not made for a single ecosystem. The new fund, named the Neuberger Securitize High Income Tokenized Fund (HINC), was launched directly across four major blockchain networks today - namely Ethereum, Solana, Avalanche, and Sui.
The scale of this institution clearly sets them apart from other experimental players. Neuberger’s fixed-income platform currently holds and manages over $230 billion in assets, a significant portion of the company’s total assets under management which exceeds $613 billion. The launch of HINC marks Neuberger’s first direct step in acting as a subadvisor for a tokenized investment product. This investment vehicle will target specific instruments: they will invest primarily in a range of high-yield bonds, alongside allocations to collateralized loan obligations (CLOs) and leveraged loan instruments.
Specialized Infrastructure and Capital Competition
To ensure the smooth minting of all instruments on the blockchain, Neuberger has handed the technical side over to its partner. Securitize steps in to provide the issuance infrastructure, while also building the management system that ensures these tokenized shares can operate in compliance with market regulations.
This maneuver comes at a time when the race for big money is at a boiling point. The launch of HINC comes right in the middle of intense competition to attract capital pools from corporates and governments, a rivalry that continues to drive institutions to craft products capable of offering yields higher than the market average. However, despite its appeal, HINC imposes strict access limits. Entry to the fund is closed to the general public and is reserved exclusively for qualified investors.
Direct Impact on the Trading Board
News of the tokenized fund launch was immediately reflected in their traditional stock movement. Neuberger shares rose about 5% during Tuesday’s morning trading session, a boost that lifted the company’s market valuation to the $838 million level.
Although in the green in the morning, this percentage gain was not enough to close the gap from previous months’ declines. Their stock price remains down more than 50% from its peak, which was reached shortly after holding their initial public offering last July.
This move to distribute investments suggests a new perspective from legacy players. Instead of betting on a single blockchain, releasing the product across four different chains ensures their yield can be captured by whatever idle liquidity is out there.
As reported by Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
