Flow Capital to Tokenize Private Credit Fund via DigiFT to Expand Capital Base

Flow Capital Partners has announced plans to tokenize its existing $150 million private credit fund using the Singapore-based platform DigiFT. The move is designed to utilize blockchain-based distribution to attract new investors and streamline the capital-raising process, with the initial transition expected by the end of April. This initiative is part of a broader strategy to expand the fund's total capacity to $250 million. According to Chief Investment Officer Jacky Tian, the firm intends to raise an additional $30 million in tokenized shares by the end of 2026, targeting a net return of 12% for investors. The fund originally launched in mid-2025 with $125 million in seed capital. Flow Capital's move mirrors a growing trend among traditional financial institutions to migrate assets on-chain. Notable precedents include BlackRock's BUIDL fund and JPMorgan's MONY money-market fund, both of which utilize the Ethereum network to enhance distribution and operational efficiency. Despite the enthusiasm for Real World Asset (RWA) tokenization, industry experts caution against the 'liquidity myth.' Representatives from Ondo Finance and Tether have noted that while blockchain improves distribution and settlement, it does not inherently transform illiquid private credit into a liquid asset. The broader tokenization market continues to grow, with total tokenized assets reaching $29.9 billion recently. US Treasury debt remains the dominant sector at $13.7 billion, while asset-backed credit currently accounts for $3.2 billion of the total value.