- Key insight: Neuberger Berman, which was founded in 1939, has set up the first tokenized high-yield fund.
- What's at stake: It's part of a broader movement toward tokenization of traditional assets, which brings speed and risk.
- Forward look: Experts expect real-world assets including real estate will eventually be tokenized.
Asset management firm Neuberger Berman is dipping its toe into on-chain finance.
The firm, which was founded in 1939 and manages $613 billion of equities, fixed income, private markets, real estate and hedge fund portfolios for banks, advisors and individuals, is launching a high-income tokenized fund with digital asset technology vendor Securitize.
It's a fresh example of a complex investment vehicle going on-chain; previous tokenized investment funds have been established for Treasuries and
Devin Ryan, head of financial services and fintech research at Citizens Bank, spoke to this trend in an American Banker webinar earlier this year.
"I cover firms like Robinhood and Coinbase, and they're talking about tokenizing everything," Ryan said. "You have to approach this from the bigger picture of, what is the value of blockchain, where is the puck going? It's not just going to be stablecoins. It's going to be a much bigger story."
The new fund, called the Neuberger Securitize High Income Tokenized Fund, will invest in high-yield bonds and other fixed-income investments like collateralized loan obligations and leveraged loans. It's being offered on the Avalanche, Ethereum, Solana and Sui distributed ledgers. Neuberger serves as the sub-adviser, responsible for investment management and security selection, while Securitize provides the tokenization platform, administration, investor onboarding, transfer agency and distribution capabilities.
High-yield bonds, sometimes called "junk bonds" have historically been high risk, representing the debt of companies with poor credit quality.
But according to Kevin Cho, global head of Neuberger's product group, today's high yield market is different from the "junk bond" reputation of decades past, "as credit quality now sits near multi-decade highs." The Neuberger fund includes liquid, well-established and often recognizable household names, he told American Banker.
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The offering lets Neuberger reach a growing segment of investors seeking to invest through tokenized funds, Cho said.
Giang Bui, vice president and head of issuer growth at Securitize, is also seeing demand "broaden as the tokenized asset market matures," Bui told American Banker. "The first major wave of institutional tokenization was concentrated in Treasury and money-market products, but investors increasingly want access to a wider range of traditional investment strategies through digital infrastructure."
Some on-chain investors seek capital preservation and yield through money market and Treasury strategies, while others want exposure to more sophisticated credit opportunities, Bui said.
"As the on-chain portfolio toolkit expands, the ability to meet investors where their appetite actually sits becomes a competitive differentiator," he said. "This isn't a new type of investment; it's a proven capability delivered through a new form of financial infrastructure."
For investors, the benefits of tokenized investments include transparent and verifiable ownership and transaction histories, portability of assets across wallets and platforms and the ability to buy and sell assets 24/7, according to Bui.
"Tokenization does not change the underlying investment strategy," he said. "It changes the infrastructure surrounding the asset, which can enhance the investor experience and create more utility for investors."
