New York Life Investment Management, which oversees $807 billion in assets, launched HYB, a tokenized high-yield corporate bond strategy on Centrifuge, settling transactions in USDC.
The move targets capital that exists onchain but does not flow through traditional fund distribution channels. Stablecoins alone hold hundreds of billions in value, and protocol treasuries actively allocate capital, according to Centrifuge. NYLIM's strategy, established in traditional markets, now exists where that capital does.
New York Life Investment Management is the asset management arm of New York Life Insurance Company, the largest mutual life insurer in the United States and in business since 1845. The firm manages fixed income, equities, and alternative investments across institutional, private wealth, and retail channels. HYB tokenizes an existing high-yield bond strategy, accessible to investors who hold or transact in stablecoins and other onchain assets.
The partnership announcement confirms that NYLIM is exploring additional applications of tokenization beyond distribution. The firm is examining portfolio construction onchain that does not yet exist in traditional markets, according to the statement. Centrifuge, a blockchain protocol for real-world asset tokenization, provided the infrastructure.
Tokenization of existing fund strategies has accelerated among traditional asset managers over the past two years. BlackRock, Invesco, and Franklin Templeton have each launched onchain versions of money market funds. Those products similarly target capital pools inaccessible through conventional channels, and many settlement in USDC or other stablecoins.
No timeline has been announced for additional onchain portfolios from NYLIM. The HYB fund is live on Centrifuge.
