Flow Capital Takes Private Credit Fund On-Chain

Image Credit: Unsplash

Flow Capital Partners plans to make a $150 million private credit fund available on-chain through Singapore-based DigiFT by the end of April. The fund launched in June 2025 with $125 million in seed capital, targets a 12% net return, and Flow Capital aims to scale it to $250 million by end of 2026. The Hong Kong asset manager also plans to raise another $30 million through tokenized fund shares as it expands the fund’s digital distribution and is expected to complete by year-end.

The move brings tokenization into a part of finance that is already large but still hard to access and slow to trade. Private credit managers have long sold illiquid loans through closed structures and long lockups. Tokenizing the fund interests does not change the underlying loans, but it can change how investors subscribe, transfer and hold exposure.

The Plan Uses an Existing Fund, Not a New Launch

The fund is not being built from scratch for crypto investors. Flow Capital is taking an existing master fund and offering it through DigiFT’s platform, which makes this more of a distribution shift than a brand-new product launch.

That distinction matters in private credit. Investors have become more focused this year on liquidity, valuation and redemption terms as parts of the sector have faced outflows and tighter scrutiny. A tokenized wrapper does not remove those risks, but it gives managers another way to package and distribute exposure while the market keeps looking for more flexible access.

DigiFT Gives the Fund a Regulated On-Chain Venue

DigiFT’s regulatory status is central to the structure. DigiFT holds a  Capital Markets Services license and is registered as a Recognized Market Operator with the Monetary Authority of Singapore, covering dealing in securities, collective investment schemes and operating an organized market.

The venue has already been building out this business. DigiFT said last year it would distribute UBS Asset Management’s tokenized money market fund, and in February, it said it would offer a DigiFT token tied to one of Invesco’s private credit strategies. Flow Capital’s fund would push that effort further into on-chain fixed income and alternative assets.

Tokenized Credit is Moving Beyond Pilots

The market backdrop has shifted. Tokenization is no longer limited to Treasuries and money market funds. Firms are now testing whether more opaque assets, including private credit, can be offered through regulated blockchain infrastructure without losing the controls institutional investors expect.

For Flow Capital, the bet is that private credit can move through digital rails without losing its appeal to professional investors. For DigiFT, the fund adds another example that Singapore’s licensed tokenization market can support more than cash-like products.