Hong Kong's Flow Capital Tokenizes $150mn Private Credit Fund: Bloomberg

The firm will offer tokenized access via DigiFT, a Singapore-based regulated digital asset exchange, according to Bloomberg. It aims to raise an additional $30mn this year, scaling the fund to $250mn. The move positions Flow Capital among a small but growing group of asset managers bringing private credit onchain.

Private credit typically delivers stronger returns than the roughly 5% available in blockchain-based money market funds, though it carries higher risk. Flow targets a 12% net return and says its focus on collateral-backed lending helps manage downside.

The launch arrives as private credit markets face pressure from higher interest rates, rising defaults and liquidity constraints. Still, stablecoin supply has grown 37% to about $320bn over the past year, according to DefiLlama, creating fresh demand for tokenized yield products.