Flow Capital on Blockchain to Simulate $150M Private Credit Fund: Report
Flow Capital Partners plans to float a private credit fund through Singapore-based DigiFT, Bloomberg reported Friday as the Hong Kong credit manager looks to tap blockchain-based distribution for its next capital raise.
According to the report, Flow Capital plans to launch a $150 million private credit fund on blockchain by the end of April.
The $30 million raise is part of the company's plan to expand its fund size to $250 million, with a 12 percent net return. The fund launched in mid-2025 and raised $125 million in seed capital, the company said. Cointelegraph reached out to Flow Capital and DigiFT for comment.
The move adds to the growing push to use distribution channels for traditional credit products.
The big TradFi companies announced some similar tokenization initiatives, including the asset manager BlackRock, its BlackRock USD Institutional Digital Liquid Fund (BUIDL), a tokenized treasury fund on Ethereum, March 2024. The investment banking giant JPMorgan also tokenized its money-market fund, My OnChain Net Yield on December 5 Ethereum Fund (MONY2) on December 2.
However, industry leaders have addressed misconceptions associated with the flow of tokenized assets.
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Executives warn that tokenization is not liquidity
According to Ondo Finance Sales Director Oya Seliktemur, tokenization will not magically liquidate hard-to-trade assets.
“I think there's still this idea that faking something illegal will magically make it a liquid asset, and that's not true,” Siliktemur said at a panel discussion at Paris Blockchain Week 2026.
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, made the same point, tokenizing an asset does not make it liquid, but some instruments, including bonds, money market funds and stablecoins, will probably see uniform liquidation on the blockchain rail.
In the last 30 days, the total value rose by 9.6% to $29.9 billion, RWA.xyz data shows.
Tokenized US Treasury debt was the largest sector with a value of $13.7 billion, followed by commodities at $5.4 billion and asset-backed credit at $3.2 billion.
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