Hong Kong-based Flow Capital Partners is set to tokenize its $150 million private credit fund through Singapore’s DigiFT platform by the end of April, marking another significant step in the growing trend of traditional finance embracing blockchain technology. The supporting evidence appears in according.
The credit manager aims to raise an additional $30 million in tokenized shares by the end of 2026 as part of its broader expansion strategy.
Jacky Tian, chief investment officer of Flow Capital, confirmed the company’s plans to bring the fund onto the blockchain through the Singapore-based tokenization platform.
The $30 million raise represents part of Flow Capital’s ambitious goal to expand the fund size from its current $150 million to $250 million, targeting a net return of 12 percent for investors.
Fund Background and Strategic Vision
The private credit fund launched in mid-2025 with $125 million in seed capital, according to Flow Capital Partners’ official communications. The decision to pursue tokenization reflects the company’s strategy to tap into blockchain-based distribution channels for its next capital raise, positioning itself within the rapidly evolving landscape of digital asset integration in traditional finance.
The tokenization initiative places Flow Capital among a growing roster of traditional financial institutions exploring blockchain technology for fund distribution and management.
This approach allows the company to access a broader investor base while potentially reducing operational costs and enhancing transparency through distributed ledger technology.
Industry Context and Major Player Adoption
Flow Capital’s move aligns with a broader industry trend that has seen major traditional finance giants embrace tokenization for various financial products.
Asset management behemoth BlackRock launched its BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, a tokenized treasury fund on Ethereum in March 2024, demonstrating institutional confidence in blockchain-based financial instruments.
Investment banking giant JPMorgan followed suit by launching its tokenized money-market fund, the OnChain Net Yield Fund known as MONY, on Ethereum in December 2025.
These developments have established precedent for institutional adoption of tokenization technology, creating a more favorable environment for smaller players like Flow Capital to pursue similar strategies.
The tokenized assets market has shown robust growth, with total value rising 9.6 percent during the past 30 days to reach $29.9 billion, according to RWA.xyz data.
Tokenized US treasury debt leads the sector with $13.7 billion in value, followed by commodities at $5.4 billion and asset-backed credit representing $3.2 billion of the market.
This growth trajectory suggests increasing investor appetite for tokenized financial products, potentially providing Flow Capital with access to a receptive market for its upcoming fundraising efforts.
The private credit sector, in particular, has gained attention as institutional investors seek yield opportunities in an evolving interest rate environment.
Liquidity Challenges and Expert Warnings
Despite the growing enthusiasm for tokenization, industry experts have raised important cautionary notes about misconceptions surrounding tokenized asset liquidity.
Oya Celiktemur, sales director for Europe at Ondo Finance, emphasized during a panel discussion at Paris Blockchain Week 2026 that tokenization does not automatically transform illiquid assets into liquid ones.
“I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true,” Celiktemur stated.
This perspective highlights a critical consideration for potential investors in Flow Capital’s tokenized fund, as private credit instruments typically involve longer-term commitments and limited secondary market activity.
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, echoed similar concerns while acknowledging that certain instruments may achieve better liquidity outcomes on blockchain infrastructure.
He noted that bonds, money market funds, and stablecoins are more likely to maintain consistent liquidity when deployed on blockchain rails, suggesting that the underlying asset type plays a crucial role in determining tokenization success.
These expert insights underscore the importance of realistic expectations for tokenized private credit funds.
While blockchain technology can enhance accessibility, transparency, and operational efficiency, it cannot fundamentally alter the liquidity characteristics of the underlying credit instruments that typically require extended holding periods.
The tokenization of Flow Capital’s fund represents a significant test case for private credit tokenization, particularly given the fund’s substantial size and institutional backing.
Success in raising the targeted $30 million through tokenized shares could encourage other private credit managers to pursue similar strategies, potentially accelerating the integration of traditional credit markets with blockchain technology.
For Flow Capital, the tokenization initiative serves multiple strategic purposes beyond capital raising. The blockchain-based approach may attract tech-savvy institutional investors who prefer digital asset exposure while maintaining exposure to traditional credit markets.
Additionally, the transparency and programmability features of blockchain technology could enhance investor reporting and fund management capabilities.
Not Financial Advice: This article is for informational purposes only. Crypto investments are highly volatile. Always do your own research.
