Avalanche News: $807B Giant Takes Its First Fund On-Chain
RWA Signal Insight
Private CreditNew York Life Investment Management (NYLIM), an asset manager overseeing $807 billion, has launched its inaugural tokenized fund, the High-Yield Bond (HYB) fund, on the Avalanche blockchain. Developed in collaboration with the tokenization platform Centrifuge, the fund brings an actively managed U.S. high-yield corporate bond strategy on-chain, with subscriptions and redemptions settled in USDC. This development marks a significant shift for Avalanche, which has historically focused on Treasury-based products, by introducing actively managed corporate credit to its ecosystem. Simultaneously, regulated infrastructure provider Paxos has integrated Avalanche into its platform, granting over 650 institutions and 470 million potential end users access to AVAX and Avalanche-native USDC. By combining institutional-grade asset issuance with established, regulated custody and compliance infrastructure, these developments reduce friction for traditional finance entities. This dual-pronged expansion signals a maturing institutional footprint for Avalanche, moving beyond experimental pilots toward scalable, real-world financial utility. The integration allows financial institutions to leverage existing Paxos partnerships to build on Avalanche without requiring bespoke blockchain infrastructure.
Key points
- NYLIM launched its first tokenized high-yield corporate bond fund on the Avalanche network.
- Paxos integrated Avalanche, providing 650+ institutions access to AVAX and native USDC.
- The HYB fund utilizes Centrifuge for tokenization while maintaining NYLIM's internal portfolio management.
- The integration enables institutional access to Avalanche without requiring custom blockchain infrastructure development.
Background
New York Life Investment Management (NYLIM) is a major global asset management firm providing investment solutions for institutional and retail clients. Centrifuge is a decentralized finance protocol that enables the tokenization of real-world assets, allowing traditional financial institutions to bring off-chain assets like corporate bonds or invoices onto public blockchains for increased liquidity and transparency.