Flow Capital Partners is preparing to bring a $150 million private credit fund onchain, signaling continued institutional movement into tokenized real-world assets. The initiative highlights how traditional capital is testing blockchain rails to expand distribution beyond conventional investor bases.
According to Bloomberg, the Hong Kong-based asset manager plans to tokenize shares of the fund through DigiFT by the end of April. The fund, originally launched in June 2025, may also raise an additional $30 million in tokenized equity this year. Chief investment officer Jacky Tian said the firm is targeting $250 million in assets under management by the end of 2026.
Can Tokenization Solve Private Credit Access Constraints?
The move aligns with a broader push from global financial institutions into real-world asset (RWA) tokenization. BlackRock’s tokenized Treasury fund and JPMorgan’s $100 million tokenized money-market product both signal growing acceptance of blockchain-based fund structures within regulated finance.
Data shows the RWA market reached $58 billion as of April 14, up from $21.5 billion a year earlier. On Ethereum alone, market capitalization climbed to $19.3 billion, reflecting more than 200% annual growth as institutions test tokenized formats for yield-bearing assets. But structural risks remain under debate.
“Bringing private credit funds onchain solves the distribution problem by opening up access to a much wider pool of investors,” said Nic Puckrin, co-founder of Coin Bureau.
He added that instant settlement can create “the illusion of liquidity” if redemption demand exceeds underlying asset capacity.
Still, Flow Capital’s expansion plan suggests continued confidence in tokenization as a fundraising and distribution channel. The next phase will depend on whether investor demand for tokenized private credit can scale without exposing the liquidity constraints embedded in the underlying assets.
