Solana Move from $1.1 Trillion Asset Giant: Bond Fund Moves to Blockchain

Global asset manager Schroders is bringing its active, managed strategy of investing in emerging market bonds to Solana via Centrifuge.

Schroders, which manages approximately $1.1 trillion in assets, is building a tokenized fund structure on Solana for its investment strategy based on emerging market bonds. The London-based company, with over two centuries of history, will partner with Centrifuge, which works on the tokenization of real-world assets for technical infrastructure.

The tokenized product will be a feeder fund investing in the Schroder International Selection Fund Emerging Market Bonds strategy. Investors will not hold bonds directly in the main fund, but rather blockchain-generated shares of this feeder fund. The value of the tokenized shares will track the underlying fund’s disclosed net asset value.

The main strategy involves investing in debt instruments issued by governments and companies in emerging markets. The performance of these assets depends not only on interest rates but also on the issuers’ credit risk, fluctuations in local currencies, and the economic conditions of the countries. Therefore, the product offers a different risk profile than short-term US Treasury bonds or money market funds, which are becoming widespread in the tokenization market.

According to RWA.xyz data, the tokenized real-world asset market is worth approximately $39 billion. About $14 billion of this consists of tokenized US Treasury bonds and money market products. Schroders’ move demonstrates that blockchain-based funds are expanding beyond cash-like products.

Centrifuge platform has over $750 million in tokenized assets. This project will also be Schroders’ first product on Solana. The company previously received approval in Ireland to create a tokenized share class for a dollar-denominated money market fund.

The announcement did not specify which investors would be eligible for the product, the minimum participation amount, or the initial fund size. Therefore, this development should not be interpreted as a new investment product directly available to everyone.

*This is not investment advice.