Securitize has launched a tokenized fixed-income fund managed with Neuberger that will invest mainly in high-yield bonds and issue interests across Avalanche, Ethereum, Solana, and Sui.
Summary
- HINC will invest primarily in high-yield bonds, alongside CLOs and leveraged loans.
- Neuberger will serve as subadvisor in its first engagement with a tokenized fund.
- Eligible accredited investors and qualified purchasers can access the fund after completing required compliance checks.
- Securitize affiliates will handle investment advice, distribution, tokenization, and fund administration.
Securitize said in an Aug. 18 announcement that the Neuberger Securitize High Income Tokenized Fund, trading under the ticker HINC, will seek risk-adjusted returns from a portfolio of income-producing fixed-income assets.
Along with high-yield bonds, the mandate permits investments in collateralized loan obligations and leveraged loans. Neuberger will manage the portfolio as subadvisor, drawing on a fixed-income business overseeing more than $230 billion in assets.
Securitize Capital LLC serves as the investment adviser, while Securitize Markets LLC will offer fund interests to eligible investors. Other affiliates of the tokenization company will handle administration and operational services.
HINC brings a high-yield strategy to four blockchains
HINC will issue tokenized interests on Avalanche, Ethereum, Solana, and Sui, giving eligible investors four networks through which to access the fund.
Although the fund’s interests are represented on public blockchains, participation will remain restricted. Investors must qualify as accredited investors or qualified purchasers and complete Securitize’s onboarding process, including know-your-customer and anti-money laundering checks.
Access will also depend on an investor’s jurisdiction and applicable securities laws. As a result, the tokens will not be freely available to every wallet user in the same way as an unrestricted cryptocurrency.
Carlos Domingo, co-founder and CEO of Securitize, said the fund places Neuberger’s fixed-income capabilities on public blockchains through the company’s regulated infrastructure.
“Launching HINC across Avalanche, Ethereum, Solana and Sui gives eligible investors access through four leading blockchain network.”
Neuberger’s role is limited to serving as the fund’s subadvisor, while Securitize’s entities retain the other advisory, distribution, and administrative duties outlined in the announcement.
For Neuberger, HINC represents its first role as subadvisor to a tokenized fund. The asset manager will apply its research and portfolio-management process to the underlying fixed-income investments rather than manage the blockchain infrastructure.
Neuberger will manage the underlying fixed-income portfolio
Neuberger manages approximately $613 billion across equities, fixed income, private markets, real estate, and hedge fund portfolios, based on company data as of June 30. Its fixed-income platform accounts for more than $230 billion of that total.
Anil Abraham, Neuberger’s head of product management, said the firm has developed its fixed-income operation through several market cycles using research-led and diversified strategies.
“We are pleased to work with Securitize to extend our process-driven, actively managed approach to qualified investors looking to access fixed income strategies on-chain,” Abraham said.
Tokenization changes how investors hold and transact in fund interests, but the announced investment mandate remains centered on conventional credit instruments. High-yield bonds generally refer to corporate debt carrying ratings below investment grade, while leveraged loans are commonly issued by companies with elevated debt levels.
Collateralized loan obligations, another permitted part of HINC’s portfolio, pool corporate loans and divide their cash flows among different groups of investors. The announcement did not state how much of HINC would be allocated to bonds, CLOs, or leveraged loans.
A comparable institutional product entered the market in July when Centrifuge and New York Life Investment Management introduced a tokenized U.S. high-yield corporate bond strategy. According to a report on NYLIM’s fund, subscriptions and redemptions for the HYB product settle in USDC, while NYLIM retains responsibility for portfolio management and risk controls.
Unlike that single-chain arrangement, Securitize has chosen four networks for HINC at launch. The release did not specify whether subscriptions and redemptions would settle in dollars, stablecoins or both.
Securitize expands its tokenized fund lineup
Securitize reported more than $4 billion in assets on its tokenization platform as of April. The company also works with asset managers including Apollo, BlackRock, BNY, Hamilton Lane, KKR, and VanEck.
Earlier in August, BlackRock launched two tokenized funds holding cash, short-term U.S. government debt, and Treasury-backed repurchase agreements. Securitize acts as a transfer agent and tokenization provider for the products, according to the coverage of the funds.
HINC differs from cash and Treasury products because it takes exposure to lower-rated corporate debt and other credit assets. The fund’s return profile and risk will therefore depend on the performance of its underlying portfolio rather than the blockchain used to record ownership.
Recent figures also point to rising use of blockchains for conventional financial assets. A May report based on InvestaX data placed the tokenized RWA market excluding stablecoins at about $29 billion at the end of March, following approximately 30% growth during the first quarter.
Alongside third-party funds, Securitize placed its own publicly traded shares on Solana and Avalanche when the company began trading on the New York Stock Exchange in July. The tokenized SECZ shares represent the same common stock as the exchange-listed securities rather than a separate share class, crypto.news reported at the time.
U.S. access remains subject to securities requirements
In the United States, Securitize Markets operates as a broker-dealer registered with the Securities and Exchange Commission and runs an alternative trading system. Securitize Transfer Agent is also registered with the SEC, while Securitize Capital operates as an exempt reporting adviser, according to the company.
Those entities divide the responsibilities connected to HINC. Securitize Capital advises the fund, Securitize Markets offers its interests, and affiliated businesses provide tokenization and administrative services.
The fund’s availability to accredited investors and qualified purchasers places eligibility checks before blockchain access. Prospective investors must also pass KYC and AML screening and meet any restrictions tied to where they live.
Outside the United States, Securitize operates through Securitize Europe Brokerage and Markets, an authorized investment firm that runs a trading and settlement system under the European Union’s DLT Pilot Regime.
Founded in 1939, Neuberger remains privately held and employee-owned, with no corporate parent or unaffiliated external shareholders. The investment manager employs about 3,000 people across 26 countries and manages portfolios for institutions, financial advisers, and individual clients.