Flow Capital Tokenizes $150M Private Credit Fund on DigiFT, Targets $250M by 2026

Flow Capital is tokenizing its $150 million private credit fund on the DigiFT platform, targeting $250 million in assets by 2026, Bloomberg first reported. The deal ranks among the larger tokenized private credit initiatives to reach market as institutional interest in real-world asset (RWA) tokenization accelerates.

The broader RWA tokenization market has reached a $58 billion market cap, reflecting mounting institutional appetite for bringing traditionally illiquid assets onto blockchain rails. Private credit, a $1.7 trillion global asset class historically accessible only to large institutional investors, is increasingly targeted by tokenization platforms seeking to widen distribution and improve settlement efficiency.

DigiFT, a Singapore-based regulated exchange, provides the infrastructure for the transaction. The platform specializes in tokenized financial instruments and operates under a regulatory framework designed to meet institutional compliance requirements. By using DigiFT, Flow Capital is betting that a regulated, exchange-based structure will attract capital from investors who want on-chain exposure to private credit but cannot accept the compliance ambiguity of unregulated token issuances. The fund's tokenized units allow investors to hold a digital representation of their interest in the underlying credit portfolio, with settlement and ownership tracked on-chain.

The pitch is compelling on paper, but the limits of what tokenization actually delivers deserve scrutiny. CoinTelegraph cited crypto executives warning that tokenization does not magically make hard-to-trade assets liquid. Private credit instruments carry inherent illiquidity because their value depends on the creditworthiness of underlying borrowers, loan covenants, and repayment timelines. Wrapping those instruments in a token does not change the underlying credit risk, nor does it guarantee a functioning secondary market. Secondary market depth for tokenized private credit remains thin across the board, and Flow Capital's offering faces the same structural constraints as any other product in this category. Regulatory clarity is another open question: tokenized private credit instruments sit in a gray zone across multiple jurisdictions, and the rules governing their trading and custody are still being written in most markets outside Singapore.

None of that negates the strategic logic of the move. Flow Capital is using tokenization primarily as a capital-raising tool, not a liquidity promise. By issuing digital tokens, the fund can target a broader pool of accredited and institutional investors who prefer on-chain subscription and management over traditional fund administration. The $250 million target by 2026 implies the firm expects tokenization to unlock incremental capital that a conventional fund structure would not reach. If the secondary market for tokenized private credit matures alongside the primary issuance market, the liquidity argument could strengthen over time, but that is a forward-looking assumption rather than a present reality.

For the broader RWA sector, Flow Capital's deal is another data point in a clear directional trend. Institutions are no longer just studying tokenization; they are committing capital and operational resources to it. The $58 billion market cap figure, while still small relative to global fixed income markets, has grown substantially over the past two years and now includes tokenized Treasuries, money market funds, real estate, and increasingly, private credit. Flow Capital's $150 million fund will not move that number significantly on its own, but it contributes to a pattern of deal flow that signals private credit tokenization is graduating from proof-of-concept to operational product. Whether secondary market infrastructure catches up fast enough to validate the liquidity narrative is the defining question for this segment heading into 2026.