CoinDesk
Schroders is bringing its Emerging Market Bonds strategy to Solana through tokenization specialist Centrifuge, marking the $1.1 trillion asset manager’s first deployment on the blockchain. Investors will hold tokenized shares in a feeder fund that invests in Schroders’ underlying bond fund, with share values tracking its net asset value.
The strategy invests in government and corporate debt across emerging economies. Schroders says it has managed emerging-markets debt for more than 50 years, with over 40 investment professionals dedicated to the asset class. Centrifuge provides the infrastructure to issue and manage the tokenized shares.
Why it matters
Tokenized U.S. Treasuries and money market funds have led early growth in onchain real-world assets. They account for $14 billion of the $39 billion tokenized RWA market tracked by RWA.xyz. Emerging-markets debt brings a different mix of risks and returns, including borrower creditworthiness, currency movements and economic conditions across developing countries.
The structure is a feeder fund with an onchain share class, not direct ownership of Schroders’ underlying fund. It broadens the types of investment strategies being offered on blockchain infrastructure beyond cash and short-duration government securities.
Market impact
The launch adds to a wider push by established asset managers to put investment products onchain. Schroders previously received regulatory approval in Ireland for a tokenized share class of its U.S. dollar money market fund, Schroders Onchain Active Returns. Federated Hermes and New York Life’s asset management arm have also announced tokenization initiatives.
For Solana, the deployment brings a global asset manager’s actively managed bond strategy onto the network. The launch shows tokenization efforts reaching into a new asset class, though the feeder-fund structure means investors hold its tokenized shares rather than shares directly in Schroders’ underlying fund.
Frequently asked questions
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What will investors hold in Schroders’ Solana launch?
Investors will hold tokenized shares in a feeder fund that invests in Schroders’ underlying Emerging Market Bonds fund. They will not hold shares directly in that underlying fund.
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How are the tokenized feeder-fund shares valued?
The shares’ values track the feeder fund’s net asset value.
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What does Schroders’ emerging-markets bond strategy invest in?
It invests in debt issued by governments and companies across emerging economies, exposing investors to borrower creditworthiness, currency movements and local economic conditions.
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How large is the tokenized real-world asset market cited in the story?
RWA.xyz tracks a $39 billion tokenized real-world asset market. Tokenized U.S. Treasuries and money market funds account for $14 billion of it.
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Why is the Solana launch a first for Schroders?
It is Schroders’ first deployment on Solana. The firm had previously pursued tokenization, including regulatory approval in Ireland for a tokenized share class of its U.S. dollar money market fund.
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