DigiFT to Enable Tokenization of Flow Capital's $150M Credit Fund: Report
According to Bloomberg, Flow Capital intends to tokenize its private credit fund as a means to secure additional funding, though cryptocurrency industry leaders caution that tokenization alone doesn't automatically transform illiquid assets into liquid ones.
Bloomberg reported on Friday that Flow Capital Partners intends to tokenize its private credit fund via Singapore-based DigiFT, as the Hong Kong-based credit management firm explores blockchain-powered distribution channels for its upcoming fundraising initiative.
The report indicates that Flow Capital is working to bring its $150 million private credit fund onto the blockchain using the Singapore-based tokenization platform DigiFT before the end of April, with ambitions to secure an additional $30 million through tokenized shares by the conclusion of 2026, according to statements from Jacky Tian, chief investment officer of Flow Capital.
This $30 million capital raise represents a component of the firm's broader strategy to grow the fund's total size to $250 million while targeting a net return of 12%. The fund was initially launched in mid 2025, backed by $125 million in seed capital, based on information from the company. Cointelegraph has reached out to both Flow Capital and DigiFT requesting additional commentary.
This development contributes to an expanding trend of utilizing tokenization as a distribution mechanism for conventional credit products.
Several of the world's largest traditional finance institutions have unveiled comparable tokenization projects, including BlackRock, the prominent asset management firm, which introduced its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized treasury fund built on Ethereum, in March 2024. Major investment banking institution JPMorgan has similarly launched its tokenized money-market fund, My OnChain Net Yield Fund (MONY), on Ethereum in December 2025.
Despite these developments, executives within the industry have highlighted misconceptions surrounding the liquidity characteristics of tokenized assets.
Executives warn tokenization isn't liquidity
Oya Celiktemur, Ondo Finance sales director for Europe, emphasized that tokenization doesn't magically make hard-to-trade assets liquid.
I think there's still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true.
Oya Celiktemur, speaking during a panel discussion at Paris Blockchain Week 2026
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, echoed a similar sentiment, contending that the act of tokenizing an asset won't automatically render it liquid, though he noted that certain financial instruments, including bonds, money market funds and stablecoin, are likely to demonstrate consistent liquidity when operating on blockchain infrastructure.
The aggregate value of tokenized assets experienced a 9.6% increase over the preceding 30 days, reaching $29.9 billion on Friday, according to data provided by RWA.xyz.
Tokenized US treasury debt represented the largest sector at $13.7 billion in value, with commodities following at $5.4 billion and asset-backed credit accounting for $3.2 billion.