Grove plans to invest $100 million in its newly launched Securitize tokenized AAA-rated CLO fund as a pegged investment.

Decentralized finance protocol Grove announced in its official blog the launch of the Securitize Tokenized AAA-rated CLO Fund (STAC), focusing on tokenized investments in AAA-rated CLO tranches. The fund is custodied by Bank of New York Mellon (BNY) and advised by its investment arm, Insight. Subject to governance approval, Grove will provide a $100 million pegged investment to STAC. Fund units will be issued in Ethereum digital tokens, and eligible investors can subscribe through the Securitize platform.