Flow Capital to Tokenize $150M Fund, Seek $30M Raise

Flow Capital, a Hong Kong credit manager, plans to place its $150 million private credit fund on DigiFT, a Singapore tokenization platform, before the end of April. The firm intends to issue $30 million in tokenized shares by the close of 2026 to expand the fund to $250 million with a target net return of 12%.

The fund launched in mid-2025 with $125 million in seed capital. Jacky Tian, Flow Capital’s chief investment officer, provided the timeline for the tokenization and the planned tokenized share sale.

Several large financial firms have introduced tokenized funds in recent years. BlackRock launched a tokenized institutional dollar liquidity fund in March 2024, and JPMorgan introduced a tokenized money-market fund in December 2025. Asset managers and banks have used tokenization to record ownership on blockchains and to distribute fund shares.

Industry participants warn that issuing tokens does not by itself create secondary-market liquidity for inherently illiquid assets. Oya Celiktemur, Ondo Finance’s sales director for Europe, warned that tokenizing an illiquid asset will not make it liquid on its own. Francesco Ranieri Fabracci, head of tokenization expansion at Tether, noted that some instruments, including bonds, money-market funds and stablecoins, tend to show more consistent liquidity on blockchain rails.

Data from RWA.xyz show the total value of tokenized assets rose 9.6% over the prior 30 days to about $29.9 billion. Tokenized U.S. Treasury debt accounted for roughly $13.7 billion, commodities about $5.4 billion and asset-backed credit about $3.2 billion.

Tokenization typically means issuing digital tokens on a blockchain that represent ownership or entitlement to underlying assets or fund shares. Proponents say tokenization can enable fractional ownership and simpler distribution of shares; critics emphasize that the existence of a token does not guarantee a functioning secondary market or immediate liquidity for hard-to-trade assets.