Key Takeaways
- Flow Capital is using tokenisation to recruit more investors and raise $30 million for its private credit fund. This action demonstrates how blockchain is increasingly being adopted in traditional finance, with companies like JPMorgan and BlackRock spearheading related initiatives.
- Tokenisation does not, however, provide liquidity for illiquid assets, experts emphasise. Rather, it enhances dissemination and accessibility. US Treasuries are driving the rapid growth of the tokenised asset market, which has reached $29.9 billion.
- In general, tokenisation is changing the financial industry, but before making a choice, investors need to be aware of both its advantages and disadvantages.
Can private credit scale new heights, or face hidden risks in sight? Bloomberg revealed on Friday that Flow Capital Partners intends to tokenise its private credit fund via Singapore-based DigiFT, as the Hong Kong credit manager seeks to use blockchain-based distribution for its upcoming capital raising.
According to the report, Flow Capital intends to use Singapore-based tokenisation platform DigiFT to launch its $150 million private credit fund on the blockchain by the end of April.
The company’s chief investment officer, Jacky Tian, stated that the company hopes to raise an additional $30 million in tokenised shares by the end of 2026. The company intends to increase the fund’s size to $250 million with a target net return of 12% as part of the $30 million raise.
According to the corporation, the fund received $125 million in seed capital in the middle of 2025. Flow Capital and DigiFT have been contacted by Cointelegraph for comment.
TradFi Giants Bet Big On Tokenization, But Risks Remain
The action contributes to the growing movement to provide conventional credit products through tokenisation. Asset management firm BlackRock, which introduced the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenised treasury fund on Ethereum, in March 2024, is among the largest TradFi companies to announce such tokenisation plans.
In December 2025, investment banking behemoth JPMorgan also introduced My OnChain Net Yield Fund (MONY), a tokenised money-market fund, on Ethereum. Leaders in the industry, however, have brought up misunderstandings regarding tokenised assets’ liquidity.
Tokenisation does not automatically make difficult-to-trade assets liquid, according to Oya Celiktemur, sales director at Ondo Finance in Europe.
US Treasuries Lead Tokenization Surge With $13.7B Market Share
Celiktemur stated, “I think there’s still this idea that tokenising something illiquid will somehow magically make it a liquid asset, which is just not true,” at a panel discussion at Paris Blockchain Week 2026.
While claiming that tokenising an asset won’t make it liquid, Francesco Ranieri Fabracci, head of tokenisation growth at Tether, stated that certain instruments, including bonds, money market funds, and stablecoin, will probably experience constant liquidity on blockchain rails.
According to market predict, the total value of tokenised assets increased by 9.6% over the previous 30 days to $29.9 billion on Friday. With a value of $13.7 billion, tokenised US Treasury debt was the largest sector, followed by commodities ($5.4 billion) and asset-backed credit ($3.2 billion).
Final Thought
Will blockchain make funds grow, or is it just for show? By tokenising its private credit fund, Flow Capital is utilising blockchain technology to reach additional investors. Strong trust in this approach is demonstrated by the goal of raising $30 million and expanding the fund to $250 million. Tokenisation, however, does not automatically generate liquidity for assets that are difficult to trade, experts caution.
Access and distribution are only enhanced. Large firms like JPMorgan and BlackRock are also following suit, indicating that the tendency is expanding. All things considered, tokenisation presents new possibilities, but before anticipating simple liquidity, investors should be aware of its limitations.
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