The Blockchain Platform Digift, based in Singapore, is set to Tokenize a private credit fund of $ 6.3 billion managed by Invesco, which marks an important step in bridging traditional finances with blockchain technology.
The relocation allows institutional investors to buy tokenized shares of the fund with US dollars or stablecoins such as AS (USDC) USDC and USDT (USDT), according to Bloomberg. The Invesco Private Credit Fund mainly invests in senior -secure loans and, since its foundation in 2006, has yielded an annual net return of 4.5%, said Digift CEO Henry Zhang.
Unlike most tokenized private credit funds, which have long repayment cycles, this fund offers daily liquidity, making it a more flexible option for investors. Tokenization, the process of converting conventional assets into digital representations on the blockchain, is rapidly expanding. 80% of the Real-World assets currently on the chain are private credit that this trend controls, according to to RWA.XYZ.
Although Invesco, which manages $ 1.9 trillion in assets, has previously offered crypto-linked exhibition-related funds, this collaboration with Digift is the first attempt at Tokenization Fund. The asset manager estimates that tokenized funds can manage to $ 600 billion by 2030, which represents 1% of the total assets in mutual and listed funds.
Digift, already an important player in the token reasons for Token, recently became the first distribution partner for UBS ‘Umint, a tokenized money market fund. The platform is subject to Singaporean regulations and has a permit as an entity for market operator and capital markets.
Settlements for the Tokenized Invesco Fund of Digift will last a maximum of five days, despite the fact that repayments are available every day. While liquidity providers manage the underlying settlement process, Zhang revealed plans to launch a liquidity pool on the chain that would enable investors to quickly exchange tokens with a little discount.
With prominent asset managers such as Franklin Templeton and BlackRock who accept tokenization, the most recent Digift action emphasizes how blockchain is increasingly being used in Tradefi.
