Invesco partners with DigiFT to launch tokenized private credit fund

Investment management firm Invesco and Singapore-based digital assets exchange DigiFT have partnered to bring on-chain private credit funds to users.

DigiFT and Invesco’s latest tokenization deal adds to the growing market that has seen real-world assets on-chain hit over $17.4 billion.

These assets, from tokenized US Treasuries to stablecoins and private credit, are a major catalyst for global web3 traction.

Invesco, DigiFT partner on tokenization initiative

According to a press release, DigiFT will leverage the new partnership to offer a token that will allow holders to invest in asset manager Invesco’s private credit fund.

While Invesco issues spot BTC and ETH exchange-traded funds, this is its first foray into the RWA market. 

The two companies will tokenize a senior private credit strategy as the first fund.

As noted, the platforms have tailored the product to address massive demand across the industry. RWA.xyz data shows the tokenized private credit market currently boasts more than $11.9 billion in active loans. 

In contrast, the private credit loans space is a $1.6 trillion market in traditional finance.

“On the back of rapid developments in distributed ledger technology, fund tokenization is one of the most remarkable trends. Many advantages of this innovation are finding a new home in the asset management space, transforming the industry. We are excited that an innovative platform like DigiFT is offering this solution, opening up more investment opportunities for investors,” Noelle Lim, Invesco’s CEO of Singapore, said in a statement. 

Fund to go live on Ethereum, Arbitrum

Invesco’s partnership with DigIFT, other global asset managers taking a huge step such as BlackRock, Fidelity and Franklin Templeton are making huge strides.

Ondo Finance, Hashnote and Superstate are also key players in the tokenization space. 

Ethereum, Solana, Arbitrum and Stellar are some of the leading chains for the asset tokenization spree.

Recently, asset manager Franklin Templeton announced the expansion of its money market fund, the OnChain U.S. Government Money Market Fund (FOBXX) to Solana.

This saw FOBXX land on another chain to add to Ethereum, Base, Aptos Stellar and Avalanche.

Notably, DigiFT will tokenize Invesco’s private credit fund on Ethereum and the Arbitrum.

“We believe that working with the best teams, to bring the best in-class assets on-chain is more important than being the first to market. To bring truly institutional-grade assets on-chain requires nothing less than having the best partners in the business like Invesco,” DigiFT founder & chief executive officer Henry Zhang, said. 

Although the partnership with Invesco is a huge deal, this isn’t the first tokenized investment fund by DigiFT.

In November last year, UBS Asset Management announced the launch of uMINT, picking DigiFT as its distribution partner.