DigiFT & Invesco’s $6.3B Private Credit Fund Tokenization: A Game-Changer for TradFi

Singapore-based blockchain platform DigiFT is taking a major step in merging traditional finance (TradFi) with blockchain technology by tokenizing Invesco’s $6.3 billion private credit fund. This marks a significant evolution in real-world asset (RWA) tokenization, making traditional investment products more accessible and liquid.

Key Highlights of the Tokenization Move

🔹 Institutional Adoption – Investors can purchase tokenized shares of the fund using U.S. dollars or stablecoins like USDC and USDT.
🔹 High-Yield Private Credit Exposure – The Invesco fund, primarily investing in senior secured loans, has delivered an annual net yield of 4.5% since 2006.
🔹 Daily Liquidity Advantage – Unlike most tokenized private credit funds with long redemption cycles, this fund will offer daily liquidity, enhancing flexibility for investors.
🔹 Massive Tokenization Potential – Invesco, managing $1.9 trillion in assets, estimates that tokenized funds could handle up to $600 billion by 2030, representing 1% of the mutual fund & ETF market.
🔹 DigiFT’s Expanding Role – DigiFT recently became the first distribution partner for UBS’s uMint, a tokenized money market fund, solidifying its position as a key player in blockchain finance.

Settlement & Liquidity Innovations

🔸 Settlement Process – Tokenized Invesco fund settlements will take up to five days, despite daily redemption availability.
🔸 On-Chain Liquidity Pool – DigiFT is developing an on-chain liquidity pool, enabling investors to redeem tokens instantly at a slight discount, improving capital efficiency.

TradFi’s Increasing Tokenization Push

With major asset managers like Franklin Templeton and BlackRock embracing tokenization, DigiFT’s latest initiative underscores the growing influence of blockchain in institutional finance. The shift towards tokenized real-world assets (RWAs) is rapidly gaining traction, unlocking new possibilities for investors and reshaping global capital markets.

🚀 Is tokenization the future of asset management? The financial industry seems to think so.