Schroders brings emerging market bond fund to Solana with Centrifuge
Schroders puts bond strategy on Solana
Schroders is bringing its emerging markets bond strategy to the Solana blockchain. The London-based asset manager is working with tokenization specialist Centrifuge on the move.
It is Schroders' first deployment on Solana, which is a blockchain, a shared digital ledger that records transactions. The firm said it oversees $1.1 trillion in assets as of June.
What Schroders announced on Wednesday
- Schroders is tokenizing its Schroder International Selection Fund Emerging Market Bonds strategy with Centrifuge.
- Investors will hold tokenized shares in a feeder fund. That feeder invests in Schroders' underlying Emerging Market Bond Fund.
- The value of the tokenized shares tracks the net asset value of the underlying fund.
- The strategy invests in debt from governments and companies in emerging economies.
- Schroders has managed emerging markets debt for more than 50 years, with a team of more than 40 investment professionals for the asset class.
How the tokenized shares work
The Schroder International Selection Fund is legally a feeder fund with an onchain share class. Investors hold tokenized shares in the feeder rather than holding the Schroders fund directly.
Centrifuge provides the infrastructure to issue and manage the assets. The report said Centrifuge has more than $750 million in tokenized assets on its platform.
What Schroders and its partners said
John Mensack, senior investment director of fixed income at Schroders, said: "As the digital financial ecosystem develops, we also recognise the importance of bringing relevant emerging markets debt opportunities onchain, helping to make the asset class more accessible and fit for the future."
Anil Sood, chief strategy and growth officer at Centrifuge, said: "Until now, onchain fixed income has largely been built around cash and short-duration government securities." He added: "Emerging markets debt introduces a fundamentally different source of risk and return."
Nick Ducoff, head of institutional growth at the Solana Foundation, said: "The arrival of an asset manager like Schroders marks a new stage for onchain capital markets." He added that the market is moving beyond tokenized cash products toward actively managed strategies on public blockchain infrastructure.
Move beyond cash-like tokenized products
The report said early tokenization has focused on cash-like products, such as tokenized U.S. Treasuries and money market funds. Those products still make up $14 billion of the $39 billion tokenized real-world asset market, according to data tracked by RWA.xyz cited in the report.
This is not Schroders' first tokenization step. In August, the firm obtained regulatory approval in Ireland for a tokenized share class of a U.S. dollar money market fund called Schroders Onchain Active Returns, or SOAR.
Other large asset managers have also made tokenization moves. Federated Hermes, which oversees $911 billion in assets, unveiled plans in October to issue its first tokenized fund shares in early 2027. New York Life's asset management arm, which oversees more than $800 billion, has entered the market through Centrifuge with a high-yield corporate bond strategy.
CoinDesk report
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