Ted Hisokawa
Apr 17, 2026 12:54
Hong Kong credit manager Flow Capital plans to tokenize its $150M private credit fund through DigiFT, targeting $30M in new capital by year-end.
Flow Capital Partners will tokenize its $150 million private credit fund through Singapore-based platform DigiFT by month’s end, Bloomberg reported Friday. The Hong Kong credit manager aims to raise an additional $30 million in tokenized shares by December 2026, according to chief investment officer Jacky Tian.
The raise would push the fund toward its $250 million target, with projected net returns of 12%. Flow Capital launched the fund in mid-2025 with $125 million in seed capital.
TradFi Giants Already Playing This Game
Flow Capital joins an increasingly crowded field of traditional finance players experimenting with blockchain-based fund distribution. BlackRock launched BUIDL, its tokenized treasury fund on Ethereum, back in March 2024. JPMorgan followed with its MONY tokenized money-market fund in December 2025.
The broader tokenized asset market has been gaining momentum. Total value across all tokenized real-world assets hit $29.9 billion as of Friday—up 9.6% over the past 30 days, according to RWA.xyz data. Tokenized US treasury debt dominates at $13.7 billion, followed by commodities at $5.4 billion and asset-backed credit at $3.2 billion.
Don’t Confuse Tokenization With Liquidity
Industry veterans are pushing back on inflated expectations around what tokenization actually delivers.
“There’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true,” Oya Celiktemur, Ondo Finance’s European sales director, said at Paris Blockchain Week 2026.
Francesco Ranieri Fabracci, Tether’s head of tokenization expansion, echoed the point but noted certain instruments—bonds, money market funds, stablecoins—will likely see consistent liquidity on blockchain rails. Private credit, with its longer lock-up periods and complex structures, doesn’t fall neatly into that category.
What This Means for the Market
Flow Capital’s move signals continued institutional appetite for blockchain distribution channels, even for traditionally illiquid asset classes. The real test won’t be whether they can tokenize the fund—DigiFT handles the technical lift. It’s whether they can actually find $30 million worth of buyers comfortable holding tokenized private credit exposure through year-end.
Watch for more mid-sized credit managers following this playbook as tokenization infrastructure matures and regulatory clarity improves across Asia.
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