Hong Kong-based Flow Capital Partners is tokenizing its $150 million private credit fund on blockchain, according to Bloomberg. It’s another step in traditional finance’s push toward real-world asset tokenization. The firm plans to raise an additional $30 million in tokenized shares by the end of 2026. They’re using DigiFT, a Singapore-based tokenization platform.
The fund launched in mid-2025 with $125 million in seed capital. It targets a net return of 12% as it grows toward $250 million total, Bloomberg reported. Flow Capital is converting traditional fund shares into digital tokens. The goal: expand its investor base and improve operational efficiency. That promise is driving broader industry interest in blockchain-based assets.
Tokenization advocates are tempering expectations about one key selling point: liquidity. “Turning an illiquid asset into a token does not ‘magically’ make it easy to trade,” Oya Celiktemur of Ondo Finance told Bloomberg. Francesco Ranieri Fabracci of Tether echoed the caution. He noted that “only certain instruments…are likely to maintain consistent on-chain liquidity.”
The skepticism comes as tokenized asset value has reached $29.9 billion globally. U.S. Treasurys lead the pack. Commodities and asset-backed credit follow, according to Bloomberg. Major financial institutions including BlackRock and JPMorgan have recently launched tokenized financial products. It signals growing institutional appetite for blockchain-based securities. The technological and regulatory complexities haven’t stopped them.
Flow Capital’s move represents a test case. Can blockchain technology genuinely improve access and efficiency in private credit markets? Or do the benefits remain largely theoretical? Private credit funds typically lock up investor capital for years. They restrict redemptions. Those characteristics won’t change simply by recording ownership on a distributed ledger.
The initiative also highlights how traditional asset managers are exploring blockchain infrastructure. They’re not trying to create speculative crypto products. They’re looking to potentially streamline back-office operations and reach investors who might prefer digital custody and settlement. Whether those efficiency gains materialize at scale remains an open question. The tokenization trend continues to attract capital and attention from established financial players.
