BNY Investments, a global leading Asset Manager with $2.2 trillion AUM, has partnered with OpenEden to bring its BNY Mellon Global Short-Dated High Yield Bond Fund on-chain (“HYBOND”).
The BNY Mellon Global Short-Dated High Yield Bond Fund is a $2.36B actively managed liquid credit strategy that invests in a globally diversified portfolio of short-dated, high-yield corporate bonds. The fund has a ten-year track record, a 3-year annualized return of 9.47%, and a 3-year annualized Sharpe ratio of 1.96x. The current portfolio has an average yield to expected maturity of ~7% and an average expected maturity of 2.4 years.
HYBOND, the first tokenized high yield bond offering in the market, gives eligible investors 1:1 on-chain exposure to the bond fund with daily liquidity and no lock-up.
Why High Yield Bond Exposure Now
Most tokenized products to date have focused on treasuries and cash equivalents. By tokenizing the BNY Mellon Global Short-Dated High Yield Bond Fund, we move the exposure further down the credit curve into a strategy designed to capture the credit risk premium while keeping interest rate risk low through shorter duration.
In its recent market insights, BNY noted that global short-dated high yield bonds help deliver a transparent carry profile without the complexity of longer-duration positions. BNY also pointed to a strong technical backdrop: high absolute yields, low default rates, and a solid institutional investor base, which supports the case for short-dated high yield bonds.
Borrow Against HYBOND: Portfolio Financing, Now On-Chain
The carry case above is why investors hold an allocation like this. The next question is what else the position can do while they hold it.
In private banking, the answer has long been the Lombard loan. Instead of liquidating a position to raise cash, the client pledges the portfolio and borrows against it. They stay invested and continue to earn carry while putting the borrowed liquidity to work elsewhere.
HYBOND brings that same construct on-chain. A new HYBOND market is now live on Euler. The market, curated by Clearstar Labs, marks the first time a tokenized high yield bond fund can be posted as on-chain collateral for borrowing.
Holders can deposit HYBOND, borrow USDC against it at up to 70% LTV, and retain exposure to the underlying bond strategy for the life of the loan. Upon repayment, holders receive back the same amount of HYBOND tokens, with the token’s value continuing to reflect the NAV of the underlying bond fund.
Private banks screen a bond sleeve on volatility, risk-adjusted return, duration, and liquidity before lending against it. The Key Facts below show how the underlying fund measures against that screen and support the 70% LTV on Euler’s HYBOND market.
BNY Mellon Global Short-Dated High Yield Bond Fund Key Facts (as of 30 June 2026)*
- Annualized return: 7.18% (1y), 9.47% (3y), 6.78% (5y)
- Average yield to expected maturity: ~7%
- Average expected maturity: 2.4 years
- Annualized 3-year Sharpe ratio: 1.96x
- Annualized 3-year standard deviation: 2.39%
- Daily subscription and redemption, with no lock-up
- Minimum investment: $10,000 initial, $1,000 subsequent
- LTV on Euler’s market (Ethereum): 70%
Held, HYBOND earns carry. Pledged, it raises liquidity without giving up that carry. Tokenized treasuries already move freely as collateral. HYBOND brings that same utility to actively managed high yield credit.
Access HYBOND
*The performance figures reflect the underlying BNY Mellon Global Short-Dated High Yield Bond Fund. Past performance is not indicative of future results.
About OpenEden
OpenEden operates a leading regulated tokenization platform, renowned for its unmatched focus on regulatory standards and advanced financial technology. Founded in 2022, OpenEden bridges traditional and decentralized finance by providing, through its regulated entities in Bermuda and the BVI, secure, transparent, and compliant on-chain access to tokenized assets. OpenEden is tokenizing global finance with a core focus on compliance and innovation. To learn more, visit www.openeden.com.
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