Flow Capital’s Tokenisation Plan
Flow Capital Partners, a Hong Kong-based asset manager, plans to offer its $150m private credit fund on a Singapore-based blockchain platform, according to Private Equity Wire. The firm will list the fund on DigiFT Tech Pte. by month-end, enabling it to raise an additional $30m in tokenised shares by year-end. The fund, launched in June, is targeting growth to $250m by the end of 2026, as stated by CIO Jacky Tian.
Industry Context in Tokenised Assets
This initiative marks one of the first moves by an Asian asset manager into tokenised private credit, placing Flow alongside global firms such as Apollo Global Management and Invesco, which have begun experimenting with blockchain-based fund structures. Tokenisation involves issuing digital representations of traditional financial assets on blockchain infrastructure, enabling fractional ownership and potentially broader investor access. In Asia, most tokenised funds to date have focused on lower-risk money market strategies, while private credit offerings typically target higher-yield lending opportunities with greater risk, as widely known in financial markets.
Challenges in Private Credit and Flow’s Strategy
The move occurs as the private credit sector faces pressures from higher interest rates, rising default risks, and liquidity constraints that are testing fund resilience. Flow Capital remains confident in its strategy, citing a focus on collateral-backed lending and the selection of an established blockchain platform to support the fund structure, according to the firm. This positions the tokenisation as a potential response to these market dynamics.
Looking Ahead
Flow’s plan highlights ongoing innovation in fund structures within private credit, with the firm aiming for expansion through tokenisation. As a widely recognised trend, blockchain technology is increasingly adopted for asset management to enhance accessibility, though specific outcomes for Flow will depend on execution by year-end.
