Hong Kong credit manager Flow Capital Partners is planning to tokenize its $150 million private credit fund through Singapore’s DigiFT, according to a recent report. The firm aims to raise an additional $30 million in tokenized shares by the end of 2026, expanding the fund to $250 million. This move aligns with a broader trend of major traditional finance firms like BlackRock and JPMorgan utilizing blockchain for asset distribution, though executives caution that tokenization does not automatically create liquidity for assets.
Flow Capital Partners intends to tokenize its $150 million private credit fund via the Singapore-based platform DigiFT by the end of April. The firm’s chief investment officer, Jacky Tian, stated the goal is to raise a further $30 million in tokenized shares by late 2026.
This expansion would bring the fund’s total size to $250 million, targeting a 12% net return. The fund initially launched in mid-2025 with $125 million in seed capital, according to the company.
The initiative is part of a growing push to use tokenization as a distribution channel for traditional credit products. Major firms including BlackRock and JPMorgan have launched their own tokenized funds on the Ethereum blockchain.
However, industry executives warn against misconceptions regarding the liquidity of tokenized assets. Oya Celiktemur, sales director for Europe at Ondo Finance, said, “I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true.”
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, made a similar point about liquidity. He noted that some instruments like bonds and money market funds may see consistent liquidity on blockchain rails.
The total value of tokenized assets reached $29.9 billion, data from RWA.xyz shows. Tokenized U.S. treasury debt constitutes the largest sector with $13.7 billion in value.
