Key Points:
- DigiFT launches tokenized private credit funds for investors worldwide, denominated in stablecoins.
- Flow Capital aims to raise $30 million and grow the fund to $250 million by 2026.
- RWA market increases to $58 billion with Ethereum driving tokenized asset activity.
Tokenized private credit fund activity is expanding in Asia-Pacific as Flow Capital Partners prepares to introduce blockchain-based access to its existing $150 million private credit master fund. The Hong Kong-based alternative asset manager plans to issue tokenized shares via the Singapore-based platform DigiFT before the end of the month, targeting stablecoin investors as part of the distribution structure.
Bloomberg reported on Friday that the firm aims to raise another $30 million by year-end, to scale up its fund to $250 million by 2026.
Distribution of Tokenized Private Credit Fund Via DigiFT
The tokenized private credit fund will be distributed via DigiFT, a Singapore-based blockchain platform for regulated digital asset issuance.
Flow Capital Partners indicated that the rollout is scheduled to be completed by the end of the month. However, an additional capital target of $30 million is expected to be raised before the close of the current year.
https://x.com/i/status/2044966842716807392
Chief Investment Officer Jacky Tian stated that the firm aims to increase the total fund size to $250 million by the end of 2026.
Growing Institutional Participation Broadens Scope of Tokenization
The tokenized private credit fund joins a market where institutional participation in blockchain-structured systems has been growing. BlackRock has introduced its tokenized Treasury fund, BUIDL, which operates as a money-market product on public blockchain networks.
In addition, JPMorgan launched its tokenized money-market fund, MONY, on Ethereum in December. The project was launched with an initial $100 million in funding from internal sources before it was made available to outside investors.
Through its upcoming token launch, Flow Capital will bring private credit into this sector. This is an effort to introduce more types of financial products onto the blockchain platform, alongside other assets.
RWA Market Growth & Increase in Ethereum’s Volume
The growth of the private credit token fund is paralleled by growth in the real-world assets (RWA) market segment. According to market data, RWAs’ total capitalization reached $58 billion by April 14, up from $21.5 billion at the same time last year.
Ethereum continues to serve as a central network for tokenized asset activity. The blockchain’s RWA market capitalization rose to $19.3 billion, up more than 200% year over year.
In addition to personal loans, tokenized goods have also seen their market value grow. The market is worth approximately $7 billion, and one of its most valuable assets includes tokenized gold like XAUt. Additional tokenized assets tied to commodities, including soybeans, natural gas, and green energy credits, have been introduced as collateral layers across financial systems.
Liquidity Structure and Market Infrastructure
The tokenized private credit fund structure introduces changes to settlement and transfer processes but does not alter the underlying asset characteristics.
Nic Puckrin, co-founder of crypto analysis platform Coin Bureau, stated that tokenization allows access to a broader group of investors by expanding distribution channels. He noted that the process addresses participation by enabling wider access, while underlying liquidity characteristics remain unchanged.
According to Puckrin, blockchain-based settlement may offer faster transaction speeds, but the underlying private credit assets retain their original liquidity profiles. However, he noted that any excess redemption pressure would strain the fund, especially when redemptions exceed its liquidity.
Analysts at Bitfinex stated that the current market phase is characterized by infrastructure development. According to the analysis report, on-chain assets offer features such as immediate transfers, global auditing, and transparency, unlike the traditional settlement system.
Furthermore, the report showed that more than $25 billion of tangible assets had been tokenized, most of which lay dormant.
Stablecoin Market Backs Tokenized Private Credit Fund
The emergence of the tokenized private credit fund is tied to the rise of the stablecoin economy, which forms the settlement layer that facilitates blockchain transactions.
Current data places the total stablecoin market valuation at more than $315 billion.
Stablecoins enable the issuance, transfer, and redemption of tokenized assets within blockchain ecosystems. This model enables participants to engage with tokenized financial instruments without using existing payment infrastructure.
