Flow Capital Partners is set to tokenize its $150 million private credit fund using Singapore-based DigiFT, a move designed to leverage blockchain for broader distribution. The Hong Kong credit manager intends to raise an additional $30 million in tokenized shares by the end of 2026. This capital raise is part of a plan to grow the fund to $250 million, targeting a net return of 12%. The fund initially launched in mid-2025 with $125 million in seed capital.
This initiative aligns with a growing trend of tokenizing traditional credit products. Major financial institutions like BlackRock, with its BUIDL fund, and JPMorgan, with its MONY fund, have also launched tokenized offerings on Ethereum. However, industry leaders caution that tokenization does not automatically confer liquidity, emphasizing that the underlying asset's tradability remains key.