Flow Capital Partners Tokenizes $150M Credit Fund through DigiFT

Flow Capital Partners is embracing tokenization as it seeks to increase accessibility and efficiency in its investment offerings. The Hong Kong-based asset manager has announced that it will tokenize a $150 million private credit fund through Singapore's DigiFT platform. This move aligns with the growing trend of traditional financial institutions adopting blockchain infrastructure.

The decision to tokenize is driven by the desire to expand access to Flow Capital's Asia-focused credit strategy, which aims to grow to $250 million in total assets by 2026. The tokenization process will make fund shares available on the blockchain, allowing for increased participation and transparency. This shift towards digitalization reflects a broader trend of traditional asset managers seeking to leverage blockchain technology.

The adoption of tokenized assets is gaining momentum globally, with major financial institutions like BlackRock and JPMorgan Chase already exploring their potential. According to recent data, the global tokenized treasury market has reached $13.74 billion in size, covering over 75 assets and more than 60,000 holders worldwide.

The relatively stable yields offered by tokenized assets are attracting institutional interest, driving growth in the sector. As a result, traditional finance firms are increasingly entering the tokenization market, contributing to its rapid expansion.