SINGAPORE: Singaporean blockchain platform DigiFT will offer a tokenised version of a US$6.3 billion Invesco private credit fund, the latest example of blurring lines between the finance and crypto worlds.
Institutional investors can use US dollars or stablecoins USDC and USDT to purchase tokenised shares in the underlying Invesco fund, according to a statement from DigiFT on Wednesday (Feb 19). The Invesco fund, which invests in senior secured loans to companies, has delivered an annual net yield of 4.5 per cent since its inception in 2006, DigiFT Chief Executive Officer Henry Zhang said.
"This is the first and only tokenised private credit fund offering daily liquidity,” Zhang said in an interview. "Most tokenised private credit funds today have quarterly or even longer redemption cycles, making them less attractive to investors looking for more flexibility.”
Tokenisation, the process of creating digital representations of traditional assets on a blockchain, is gaining traction across the finance industry. Private credit has led the charge, accounting for roughly 80 per cent of real-world assets that have been tokenised so far, according to data provider rwa.xyz.
Invesco, which manages some US$1.9 trillion, said in a November report that tokenised funds could swell to oversee US$600 billion by 2030, representing about one per cent of total of assets under management in mutual and exchange-traded funds.
DigiFT aims to eventually offer instant settlement for the tokenised version of the Invesco fund, compared with as long as five days for the underlying vehicle, Zhang said. - Bloomberg
