DigiFT to tokenize Invesco’s RWA private credit fund

The blockchain platform based in Singapore Digift should tokenize a private credit fund of $ 6.3 billion managed by Invesco, marking a major step in filling traditional finance with blockchain technology.

This decision allows institutional investors to buy tokenized stocks from the fund with US dollars or floors like AS (USDC) USDC and USDT (USDT), according to Bloomberg. The private credit fund invested mainly in guaranteed seniors’ loans and has delivered an annual net return of 4.5% since its creation in 2006, said DIGIFT CEO Henry Zhang.

Unlike most token private credit funds, which have long buyout cycles, this fund will offer daily liquidity, making it a more flexible option for investors. Tokenization, the conversion process of conventional assets into digital representations on blockchain, is expansion quickly. 80% of active real worlds that are currently in chain are a private credit, which stimulates this trend, according to in Rwa.xyz.

Although Invesco, which manages 1.9 billion of dollars in assets, previously offered Stock market negotiated funds linked to the crypto, this collaboration with Digift is its first attempt at tokenization of funds. The active manager estimates that tokenized funds could manage up to $ 600 billion by 2030, which represents 1% of the total assets of mutual funds and exchanged.

DIGIFT, already a key player in the tokenization space, has recently become the first distribution partner for UBS D’UBS, a monetary market fund in Tokenized. The platform is subject to Singaporean regulations and is licensed as a market operator and entity in the capital markets.

The regulations of the Digift Investco Tokenized Fund will take up to five days, despite the fact that the buyouts are available every day. While suppliers of liquidity manage the underlying settlement process, Zhang revealed that the launching plans of a chain liquidity pool would allow investors to quickly buy the tokens from a small discount.

With eminent active managers like Franklin Templeton and Blackrock adopting tokenization, Digift’s most recent action underlines how blockchain is increasingly used in Tradfi.