Avalanche Unveils Tokenized High-Yield Bond Vault with BlackRock Backing

Avalanche has launched its High Yield Corporate Bond Vault, offering tokenized exposure to US high-yield corporate debt on the platform. The vault is backed by BlackRock's iShares 0-5 Year High Yield Corporate Bond ETF (SHYG), which focuses on short-duration, sub-investment-grade corporate bonds.

The vault uses an ERC-7540 contract on Avalanche and has a minimum deposit requirement of $100 in USDC. The structure is designed to be bankruptcy-remote through Open Trade SPC, a Cayman Islands Segregated Portfolio Company.

IXS Finance operates under a Bahamas DARE Act license and has achieved access as a US broker-dealer. This launch marks the second wave of institutional asset managers moving higher-yielding strategies onchain, testing whether onchain infrastructure can handle products with more complex risk profiles and variable returns.