Schroders expands tokenization push with Solana emerging market bond fund

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Schroders Solana bond launch

Highlights

Schroders is partnering with Centrifuge to tokenize its Schroder International Selection Fund Emerging Market Bonds strategy on the Solana blockchain.
Investors can buy tokenized feeder fund shares that track the underlying fund's net asset value, expanding access to emerging market government and corporate debt.
Tokenized U.S. Treasuries and money market funds now total $14 billion of the $39 billion tokenized real-world asset market, while asset managers like Schroders diversify blockchain-based offerings beyond cash products.

Solana launch broadens bond tokenization

As reported by CoinDesk, Schroders said Wednesday it is working with Centrifuge to tokenize its Schroder International Selection Fund Emerging Market Bonds strategy, marking the firm's first deployment on the Solana blockchain.

Investors can hold tokenized shares in a feeder fund that invests in Schroders' underlying bond fund, with the share value tracking the fund's net asset value. The strategy gives exposure to debt issued by governments and companies across emerging economies, adding access to markets and currencies beyond the U.S. and Europe.

London-based Schroders manages $1.1 trillion in assets and has overseen emerging markets debt for more than 50 years. The firm says more than 40 investment professionals are dedicated to the asset class.

Asset managers push beyond cash products

Schroders' move adds to a broader tokenization drive by large asset managers, including recent initiatives from Federated Hermes and New York Life's asset management arm. The trend shows how Wall Street is extending blockchain-based fund structures beyond money market offerings.

Tokenized U.S. Treasuries and money market funds have gained traction as tools for earning yield on cash while moving assets across blockchain networks. Those products still account for $14 billion of the $39 billion tokenized real-world asset market tracked by RWA.xyz.

Emerging market bonds present a different risk and return profile, with performance tied to borrower credit quality, currency swings and economic conditions across developing countries. That broadens the menu of onchain investment products while exposing investors to a more complex set of market drivers.

In our earlier article on emerging- and frontier-market sovereign resilience, we noted that persistent geopolitical shocks and elevated fiscal spending are straining government finances in a higher-rate environment. We also highlighted that rising energy and food costs can prolong inflation pressure, lift borrowing costs and worsen refinancing risk—factors that weigh on the credit outlook for many emerging-market issuers.

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