Flow Capital, a Hong Kong-based credit manager, announced this Friday, April 17, 2026, the asset tokenization of its 150 million dollar private fund through digital rails. The firm will utilize DigiFT’s infrastructure in Singapore to raise an additional 30 million dollars via digital shares before the end of the year, as confirmed by Chief Investment Officer Jacky Tian in a statement to Bloomberg.
This initiative seeks to expand the firm’s assets under management until reaching a total size of 250 million dollars by the end of the current cycle. The fund, which began operations in mid-2025 with 125 million in seed capital, maintains a target net return of 12% for its investors, including institutional and accredited clients. This technological integration occurs at a time when the real-world asset sector has reached 29.9 billion dollars in total value locked.
Private credit seeks liquidity within network architecture
Flow Capital’s decision is not an isolated event but responds to a structural shift in the distribution of traditional financial products. While US Treasury bonds dominate the RWA ecosystem with 13.7 billion dollars, asset-backed credit already represents 3.2 billion dollars within on-chain balance sheets. This move by Flow Capital attempts to replicate the success of large companies that have already validated this operational model.
For instance, the 500 million injection into the BUIDL fund demonstrated that institutional capital flows toward where settlement is immediate. However, a technical debate persists regarding the nature of these assets. Oya Celiktemur, sales director at Ondo Finance, recently warned that tokenizing an illiquid asset does not automatically make it liquid, a critical distinction that investors often overlook when evaluating private credit funds.
Market analysis suggests that tokenized private credit offers risk premiums exceeding 5% compared to digital Treasury bills. Nevertheless, the entry barrier remains the regulatory fragmentation between Hong Kong and Singapore. Flow Capital, which recently completed a strategic rebranding process, is betting on DigiFT to mitigate these legal risks through a platform that complies with security standards set by the Monetary Authority of Singapore (MAS).
The trend toward digitizing debt portfolios seems irreversible this year. In fact, BlackRock has already pointed out that crypto and tokenization drive financial markets globally in 2026, justifying the migration of funds like Flow Capital’s toward distributed rails. The fundamental difference lies in the fact that, unlike JPMorgan’s money market funds, private credit requires active management of off-chain collateral to guarantee the 12% return.
The market will closely watch whether the issuance of these 30 million dollars succeeds in attracting accredited retail capital or remains an institutional investor club under a new digital format. Meeting the late April timeline will determine if asset tokenization of private credit funds can scale beyond pilot projects.
This article is for informational purposes and does not constitute financial advice.
