Catenaa, Tuesday, April 21, 2026- Flow Capital Partners of Hong Kong plans to tokenize shares of its $150 million private credit fund and bring them onchain through DigiFT, signaling deeper institutional adoption of real-world asset tokenization as traditional finance continues integrating blockchain-based distribution systems.
The fund, originally launched in June 2025, is expected to become available onchain by the end of this month, according to reporting cited in Bloomberg. Flow Capital is also seeking to raise an additional $30 million in tokenized shares by the end of 2026, while aiming to scale the total fund size to $250 million by the end of that year.
The structure would allow investors to access shares of a private credit strategy through blockchain rails, expanding distribution beyond traditional private banking and institutional channels. DigiFT, a regulated tokenization platform, is expected to facilitate the onchain offering.
Private credit funds have become one of the fastest-growing segments within tokenized real-world assets, as asset managers seek new channels for capital formation and secondary distribution. Flow Capital’s plan reflects a broader shift in how alternative investment products are packaged and distributed, rather than a change in underlying credit exposure.
Industry participants are increasingly using tokenization to reduce operational friction in fund access, allowing investors to interact with traditional financial products through blockchain-based settlement systems.
The move aligns with a wider trend led by major financial institutions experimenting with blockchain-based fund structures. BlackRock’s tokenized Treasury fund, known as BUIDL, has become one of the most prominent examples of tokenized money-market instruments on public blockchains.
JPMorgan has also entered the space with its MONY tokenized money-market fund, launched on Ethereum in December and initially seeded with $100 million of internal capital before being opened to external investors.
These developments show that tokenization is no longer limited to crypto-native platforms but is increasingly being adopted within traditional asset management strategies.
Rapid expansion of RWA markets
The real-world asset sector has experienced significant growth over the past year. Market data shows total RWA capitalization reaching approximately $58 billion as of April 14, rising sharply from $21.5 billion one year earlier.
Ethereum remains a central hub for this activity, with RWA value on the network climbing to about $19.3 billion, representing growth of more than 200% year over year. This expansion reflects increasing institutional interest in blockchain-based settlement layers for traditional financial products.
Distribution gains versus liquidity concerns
While tokenization improves access and distribution, analysts caution that it does not eliminate structural risks associated with underlying assets. Private credit funds, in particular, face liquidity constraints due to the nature of loan-based portfolios and redemption timelines.
Some market observers note that blockchain settlement can create the perception of higher liquidity than actually exists. Instant transferability of tokenized fund shares does not necessarily translate into immediate access to underlying capital, especially during periods of redemption pressure.
This distinction remains central to ongoing debates about how tokenized financial products should be regulated and structured in order to avoid mismatches between investor expectations and asset liquidity.
Hong Kong positioning in digital asset finance
Flow Capital’s initiative highlights Hong Kong’s growing role as a testing ground for tokenized financial products. Asset managers in the region are increasingly exploring blockchain infrastructure as a way to expand global investor access while maintaining traditional fund structures.
By partnering with DigiFT, Flow Capital is positioning its private credit strategy within a regulated tokenization framework, aligning with broader efforts in Asia to integrate digital asset systems into mainstream finance.
Outlook
The planned onchain rollout reflects a broader transition in private markets toward programmable financial infrastructure. If adoption continues, tokenized funds could become a standard distribution layer for alternative assets, including private credit, infrastructure debt, and institutional yield strategies. However, the long-term impact will depend on how markets balance improved access with underlying liquidity constraints. As tokenization scales, the distinction between operational efficiency and financial risk management is expected to remain a central focus for both regulators and asset managers.
