Apollo, Securitize Launch Tokenized Credit Fund Across Several Blockchains
Apollo Global Management, one of the world's largest financial firms, is partnering with blockchain firm Securitize to bring tokenized investment opportunities to a wider audience. Their first collaboration, announced on Thursday, offers access to the Apollo Diversified Credit Fund through tokenization, initially available on six major blockchains: Aptos, Avalanche, Ethereum, Ink, Polygon, and Solana.
Tokenized Credit: Bridging Traditional Finance and DeFi
This initiative aims to bridge the gap between traditional finance and the burgeoning world of decentralized finance (DeFi). The Apollo Diversified Credit Securitize Fund (ACRED), which delivered 11.7% returns in 2024, will be accessible through digital tokens, providing crypto-native investors with a new avenue for diversifying their portfolios.
"We want crypto DeFi to expand access to institutional-quality products," said Apollo Partner Christine Moy in a post on X. She highlighted ACRED as a "higher-yielding complement to stablecoins and tokenized treasuries—plus a diversifier to volatile crypto-native yield products" for investors building diversified portfolios on-chain.
BlackRock-Backed Securitize: A Leader in Tokenization
Securitize, backed by BlackRock, the issuer of the world's largest spot Bitcoin ETF, specializes in making real-world assets (RWAs) available on the blockchain. Last year, the firm surpassed $1 billion in tokenized on-chain assets, demonstrating the growing demand for this innovative approach.
Wormhole Enables Cross-Chain Accessibility
The partnership will leverage Wormhole technology to enable seamless transfer of the fund's tokens across the different supported blockchains. This interoperability is a crucial step in making tokenized assets more accessible and user-friendly.
A Growing Trend: Traditional Finance Embraces Tokenization
Earlier this month, Securitize also joined forces with digital asset trading firm QCP to incorporate BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) into its yield-generating strategies, further highlighting the growing synergy between traditional financial institutions and the crypto space.