New York Life launches tokenized high-yield bond fund

New York Life Investment Management and Centrifuge launched the NYLIM Anemoy U.S. High Yield Corporate Bond Segregated Portfolio (ticker: HYB) on Tuesday. Subscriptions and redemptions for the tokenized share class will be settled in Circle's USDC stablecoin.

The fund is structured as a British Virgin Islands segregated portfolio and represents a tokenized share class onchain. The vehicle is offered under Reg S and is not available to U.S. investors. NYLIM retains control of the underlying portfolio, the investment process and risk management while Centrifuge supplies the tokenization infrastructure.

The offering aims to provide onchain access to NYLIM's institutional high-yield corporate bond strategy. Target investors include experienced onchain users such as stablecoin issuers seeking higher yields, decentralized finance participants building diversified or leveraged strategies, and DAO treasury managers.

Centrifuge converts USDC received from investors into U.S. dollars to purchase the off‑chain underlying assets, a process the firm says reduces exposure to stablecoin risk compared with leaving investor funds onchain. A liquidity solution with Grove, part of the Sky ecosystem, supports near-instant redemptions.

Centrifuge charges fees tied to assets under management, described as a basis fee, and has said it is focused on growth and has not yet reached profitability. New York Life Investment Management manages about $807 billion in assets.

High-yield corporate bonds carry higher credit risk and typically offer higher yields in return. The tokenized HYB gives onchain investors access to an established institutional strategy while keeping portfolio oversight and risk controls with NYLIM.

Thomas Sy, head of multi-asset solutions at NYLIM, said, “We are exploring opportunities where blockchain-enabled infrastructure can complement our existing platform and deepen the value we deliver to clients.” Bhaji Illuminati, chief executive of Centrifuge, added, “We're so excited to be working with them,” and noted the firms had collaborated for months to identify suitable tokenized products.