Invesco's $6.3B credit fund tokenised by DigiFT

Singapore-based blockchain platform DigiFT is set to tokenise a $6.3 billion private credit fund managed by Invesco, marking a significant step in integrating traditional finance with blockchain technology.  

The move will allow institutional investors to purchase tokenised shares of the fund using U.S. dollars or stablecoins like USDC (CRYPTO:USDC) and USDT (CRYPTO:USDT).  

The Invesco private credit fund primarily invests in senior secured loans and has delivered a 4.5% annual net yield since its inception in 2006, according to DigiFT CEO Henry Zhang.  

Unlike most tokenised private credit funds, this offering will provide daily liquidity, offering investors greater flexibility.  

Tokenisation, which involves converting traditional assets into digital representations on the blockchain, is rapidly gaining traction.  

Private credit accounts for approximately 80% of real-world assets currently on-chain, according to data from rwa.xyz.  

While Invesco, which manages $1.9 trillion in assets, has previously offered crypto-linked exchange-traded funds, this collaboration with DigiFT marks its first venture into fund tokenisation.  

The asset manager projects that tokenised funds could manage up to $600 billion by 2030, representing 1% of the total assets in mutual and exchange-traded funds.  

DigiFT, a regulated entity in Singapore with licenses for capital markets and market operations, recently partnered with UBS’s uMint as its first distribution partner for a tokenised money market fund.  

Through this collaboration, accredited investors can access institutional-grade senior secured loans on-chain.  

Settlements for DigiFT's tokenised Invesco fund will take up to five days, though redemptions are available daily.  

The company aims to offer instant settlement in the future.  

DigiFT is also collaborating with global asset management giant Invesco to introduce a tokenised senior secured loan strategy designed for institutional and accredited investors.