Flow Capital Partners plans to tokenize its private credit fund through Singapore-based DigiFT, Bloomberg reported on Friday, as the Hong Kong credit manager plans to apply blockchain-based distribution for its next capital raise.
According to Flow Capital plans to move its $150 million private credit fund to the blockchain via Singapore-based tokenization platform DigiFT by the end of April, according to the report, seeking to raise an additional $30 million in tokenized equities by the end of 2026, said Jacky Tian, Flow Capital’s chief investment officer.
The $30 million raise is part of the company’s plans to raise the size of the fund to $250 million with a target net rate of return of 12%. The fund launched in mid-2025 with seed capital of $125 million According to to the company. Cointelegraph has reached out to Flow Capital and DigiFT for comment.
This move increases the need to apply tokenization as a distribution channel for classic lending products.
Some of TradFi’s largest companies have announced similar tokenization initiatives, including asset manager BlackRock, which in March 2024 launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized treasury fund on Ethereum. Investment banking giant JPMorgan also launched its tokenized money market fund My OnChain Net Yield Fund (MONY) on Ethereum in December 2025.
However, industry leaders have raised misconceptions related to the liquidity of tokenized assets.
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Managers warn that tokenization does not provide liquidity
Oya Celiktemur, Ondo Finance’s European sales director, said tokenization does not magically provide liquidity for hard-to-trade assets.
“I think there is still a belief that tokenizing something illiquid will somehow magically make it a liquid asset, which is not true,” Celiktemur said during a panel discussion at Paris Blockchain Week 2026.
Francesco Ranieri Fabracci, head of tokenization development at Tether, expressed a similar view, arguing that tokenizing an asset would not ensure its liquidity, but added that some instruments, including bonds, money market funds and stablecoins, would likely have lasting liquidity on blockchain rails.
The total value of tokenized assets on Friday rose 9.6% over the past 30 days to $29.9 billion, according to data from RWA.xyz can be seen.
The largest sector at $13.7 billion was tokenized U.S. Treasury debt, followed by commodities at $5.4 billion and asset-backed credit at $3.2 billion.
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