Flow Capital Plans to Tokenize Its $150 Million Private Credit Fund

TLDR

• Flow Capital intends to tokenize a $150 million private credit fund utilizing DigiFT in Singapore.
• The firm targets raising $30 million via tokenized shares before the close of 2026.
• The fund was initiated by Flow Capital in mid-2025, backed by $125 million in seed capital.
• As the company works to grow the fund to $250 million, it is aiming for a net return of 12%.
• Tokenized funds on Ethereum have also been launched by BlackRock and JPMorgan.

(SeaPRwire) –   Bloomberg reports that Hong Kong credit manager Flow Capital intends to tokenize its $150 million private credit fund. To place fund shares on the blockchain before April concludes, the firm will employ Singapore’s DigiFT. The report indicates that the company hopes to secure $30 million in tokenized shares by the end of 2026.

Flow Capital Seeks $30 Million Capital Raise via DigiFT

Flow Capital is set to transfer its current $150 million private credit fund to the tokenization platform of DigiFT in Singapore. As part of its upcoming capital raise, the company looks to obtain $30 million through tokenized shares. Bloomberg received confirmation of this strategy from Jacky Tian, Flow Capital’s chief investment officer.

According to Tian, the $30 million is a component of a wider expansion plan for the fund. The firm intends to grow the fund’s value to $250 million gradually. The company’s stated goals include a target net return of 12%.

With $125 million in seed capital, Flow Capital established the private credit fund in the middle of 2025. To aid in distribution, the firm now intends to leverage blockchain infrastructure. Attempts by Cointelegraph to reach Flow Capital and DigiFT for comments were unsuccessful.

This decision highlights the increasing interest in blockchain-based issuance for conventional credit funds. DigiFT, which operates out of Singapore, offers tokenization solutions for regulated financial instruments. As reported by Bloomberg, Flow Capital expects to finalize the tokenization by the end of April.

Tokenization Adoption Spreads Throughout Traditional Finance

A number of traditional finance entities have rolled out tokenized investment products on public blockchains. In March 2024, BlackRock introduced its BlackRock USD Institutional Digital Liquidity Fund on Ethereum. Similarly, JPMorgan launched the My OnChain Net Yield Fund on Ethereum in December 2025.

Assumptions regarding the liquidity of tokenized assets remain a topic of discussion among industry executives. Oya Celiktemur from Ondo Finance noted that tokenization does not inherently generate liquidity for assets that are illiquid. She remarked, “I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true.”

During Paris Blockchain Week 2026, Francesco Ranieri Fabracci, Tether’s head of tokenization expansion, expressed similar sentiments. He stated that tokenizing an asset does not assure liquidity in secondary markets. Nevertheless, he observed that stablecoins, money market funds, and bonds might sustain consistent liquidity on blockchain networks.

According to data from RWA.xyz, the total value of tokenized assets hit $29.9 billion on Friday. The platform reports a 9.6% increase in market value over the last month. Leading the sector is tokenized US Treasury debt, which holds a value of $13.7 billion.

Commodities take the second spot with $5.4 billion in tokenized value across blockchain networks. Asset-backed credit comes next with $3.2 billion, per RWA.xyz statistics. These figures represent the most recent data available for tokenized real-world assets.