Invesco, a leading global asset manager with over $1.9 trillion in assets under management, is stepping into the world of tokenization by partnering with Singapore-based DigiFT. This collaboration marks a significant move into the tokenization of real-world assets (RWAs), with the tokenization of a senior private credit fund. The initiative is driven by the growing demand for alternative investments, which is becoming increasingly popular among institutional and accredited investors.
Invesco joins a growing number of high-profile asset managers exploring fund tokenization, following in the footsteps of Franklin Templeton and BlackRock, the latter of which has been in the spotlight for its own blockchain ventures.
This partnership represents DigiFT’s second major milestone. Only three months ago, DigiFT was named the first distribution partner for UBS’s tokenized money market fund, uMint. DigiFT is fully regulated in Singapore, holding both capital markets and market operator licenses, which enable it to handle both the issuance and operation of secondary markets for tokenized assets.
While UBS took charge of the tokenization process for uMint, DigiFT is responsible for tokenizing Invesco’s private credit fund. Investors in the fund will use either stablecoins or fiat currency to purchase tokens through a special purpose vehicle (SPV), which will then allocate the funds into the underlying private credit investments.
This tokenized private credit offering provides a low barrier to entry, with a minimum investment of just $10,000, significantly lower than traditional private credit funds. If demand remains strong, this threshold could be further reduced.
Notably, this fund offers daily redemption options, setting it apart from many other private credit funds in Asia, which typically allow monthly redemptions. However, while daily redemptions are possible, the settlement period remains five days, creating a gap between on-chain expectations and the liquidity of the underlying asset.
To address this issue, DigiFT’s CEO Henry Zhang has unveiled plans for a future liquidity pool, which would allow token holders to redeem their tokens instantly. This system would provide an incentive for users who are willing to wait for five days, as they would receive the full value of their token, while those seeking faster liquidity could redeem at a slight discount.
“We’re catering to those who want immediate liquidity,” said Zhang. “If someone isn’t in a rush, they can wait and receive the full amount. If they need liquidity now, they can access it instantly but at a small discount.”
This approach highlights the commercial viability of tokenization, according to Zhang. It also demonstrates how the technology could disrupt traditional liquidity models in asset management. On a technical level, the liquidity pool concept is akin to decentralized lending protocols like Aave, though its application within tokenized assets is a new frontier.
Beyond liquidity, tokenization also promises increased composability and the ability to pledge tokenized assets as collateral. Zhang emphasized that the benefits of tokenization extend far beyond liquidity, offering more flexibility and integration within the broader financial ecosystem.
Private credit has become one of the most popular asset classes to tokenize, following in the footsteps of companies like Figure, which has tokenized approximately $9.3 billion in home loans on the Provenance blockchain. Tradable, linked to Janus Henderson, has also tokenized $1.7 billion in private credit.
As distributed ledger technology continues to evolve, Invesco’s move into fund tokenization underscores the rapid transformation taking place in the asset management space. “Fund tokenization is one of the most remarkable trends to emerge from advancements in blockchain technology,” said Noelle Lim, CEO of Invesco Singapore. “The advantages of this innovation are reshaping the asset management industry and creating new opportunities for investors.”
Invesco Teams Up with DigiFT to Tokenize Private Credit Fund
Invesco, a leading global asset manager with over $1.9 trillion in assets under management, is stepping into the world of tokenization by partnering with Singapore-based DigiFT. This collaboration marks a significant move into the tokenization of real-world assets (RWAs), with the tokenization of a senior private credit fund. The initiative is driven by the growing demand for alternative investments, which is becoming increasingly popular among institutional and accredited investors.
Invesco joins a growing number of high-profile asset managers exploring fund tokenization, following in the footsteps of Franklin Templeton and BlackRock, the latter of which has been in the spotlight for its own blockchain ventures.
This partnership represents DigiFT’s second major milestone. Only three months ago, DigiFT was named the first distribution partner for UBS’s tokenized money market fund, uMint. DigiFT is fully regulated in Singapore, holding both capital markets and market operator licenses, which enable it to handle both the issuance and operation of secondary markets for tokenized assets.
While UBS took charge of the tokenization process for uMint, DigiFT is responsible for tokenizing Invesco’s private credit fund. Investors in the fund will use either stablecoins or fiat currency to purchase tokens through a special purpose vehicle (SPV), which will then allocate the funds into the underlying private credit investments.
This tokenized private credit offering provides a low barrier to entry, with a minimum investment of just $10,000, significantly lower than traditional private credit funds. If demand remains strong, this threshold could be further reduced.
Notably, this fund offers daily redemption options, setting it apart from many other private credit funds in Asia, which typically allow monthly redemptions. However, while daily redemptions are possible, the settlement period remains five days, creating a gap between on-chain expectations and the liquidity of the underlying asset.
To address this issue, DigiFT’s CEO Henry Zhang has unveiled plans for a future liquidity pool, which would allow token holders to redeem their tokens instantly. This system would provide an incentive for users who are willing to wait for five days, as they would receive the full value of their token, while those seeking faster liquidity could redeem at a slight discount.
“We’re catering to those who want immediate liquidity,” said Zhang. “If someone isn’t in a rush, they can wait and receive the full amount. If they need liquidity now, they can access it instantly but at a small discount.”
This approach highlights the commercial viability of tokenization, according to Zhang. It also demonstrates how the technology could disrupt traditional liquidity models in asset management. On a technical level, the liquidity pool concept is akin to decentralized lending protocols like Aave, though its application within tokenized assets is a new frontier.
Beyond liquidity, tokenization also promises increased composability and the ability to pledge tokenized assets as collateral. Zhang emphasized that the benefits of tokenization extend far beyond liquidity, offering more flexibility and integration within the broader financial ecosystem.
Private credit has become one of the most popular asset classes to tokenize, following in the footsteps of companies like Figure, which has tokenized approximately $9.3 billion in home loans on the Provenance blockchain. Tradable, linked to Janus Henderson, has also tokenized $1.7 billion in private credit.
As distributed ledger technology continues to evolve, Invesco’s move into fund tokenization underscores the rapid transformation taking place in the asset management space. “Fund tokenization is one of the most remarkable trends to emerge from advancements in blockchain technology,” said Noelle Lim, CEO of Invesco Singapore. “The advantages of this innovation are reshaping the asset management industry and creating new opportunities for investors.”
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