Tokenized bonds are moving up the risk curve.
After years of bringing mostly U.S. Treasuries and other low-risk assets onchain, the RWA market is starting to open up to corporate credit. OpenEden is bringing that shift to BNB Chain with HYBOND, giving eligible institutional investors blockchain-based access to a BNY Investments fund holding short-dated, high-yield corporate bonds.
Each HYBOND token provides 1:1 exposure to the BNY Mellon Global Short-Dated High Yield Bond Fund, which invests in non-investment-grade corporate debt. That means more credit risk than tokenized Treasuries, alongside the potential for higher yields.
HYBOND originally launched on Ethereum as the first BNY bond fund brought onchain. BNB Chain is now its first expansion to another blockchain, with RedStone supplying the pricing infrastructure needed to make the asset usable by smart contracts and, eventually, across DeFi.
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What Does HYBOND Give You?
Most tokenized fixed-income products have focused on relatively conservative assets such as U.S. Treasuries. HYBOND broadens that menu.
Eligible institutional investors receive tokenized exposure to a professionally managed portfolio of short-duration high-yield corporate bonds. OpenEden says each HYBOND token represents 1:1 exposure to the underlying fund.
That gives investors access to traditional high-yield credit through blockchain infrastructure while creating an asset developers could potentially integrate into onchain financial products.
“We see tokenization as a way to put traditional investment strategies into the hands of on-chain builders,” said Jeremy Ng, founder and CEO of OpenEden. “With HYBOND, we want to broaden the range of financial products those builders can create around professionally managed bond exposure.”
OpenEden operates a regulated tokenization platform with more than $250 million in combined assets under management.
Why RedStone Matters
Putting corporate bonds onchain creates a basic problem: how does a smart contract know what the fund is worth?
HYBOND relies on the fund administrator’s calculated net asset value, which reflects changing conditions in the underlying high-yield bond portfolio. RedStone publishes that NAV on BNB Chain in a verified format that smart contracts can read.
“Tokenized credit is moving beyond the cash-equivalent assets that have dominated the market,” said Marcin Kazmierczak, co-founder of RedStone.
“With verified pricing today and T+0 settlement through RedStone Settle, institutional credit can move from simply being represented onchain to becoming usable within DeFi.”
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Tokenized Credit Gets Faster Settlement
HYBOND is the third tokenized credit fund RedStone has priced this year, following Neuberger Berman’s HINC and New York Life Investments’ HYB, as tokenized markets expand beyond Treasuries into corporate credit.
The next step is RedStone Settle. Traditional fund redemptions can take days, creating a mismatch with DeFi markets where collateral may need to be liquidated immediately.
Using KYC-verified liquidity providers, RedStone Settle aims to enable T+0, or same-day, settlement for HYBOND positions, potentially making the asset more practical for collateral and lending applications.
Reporting by Lidia Yadlos
