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Apollo Converts Private Credit into Tokens to Connect Conventional and Digital Finance

Apollo Converts Private Credit into Tokens to Connect Conventional and Digital Finance

Bitget-RWA2025/09/25 13:17
By:Coin World

- Apollo launches tokenized private credit fund ACRED on Sei blockchain via Securitize, marking first blockchain-based private credit product. - The $112M fund uses Wormhole cross-chain tech for multi-network liquidity, targeting qualified investors with $50K minimums. - Backed by Coinbase and Kraken, ACRED aims to bridge traditional finance with blockchain through digitized credit strategies. - Industry analysts call it a milestone in RWA adoption, leveraging blockchain's transparency to transform alterna

Apollo Converts Private Credit into Tokens to Connect Conventional and Digital Finance image 0

Apollo Global Management, a prominent alternative investment firm overseeing $512 billion in assets, has introduced a tokenized private credit fund on the

blockchain, in collaboration with Securitize, a platform specializing in real-world asset (RWA) tokenization. The Diversified Credit Securitize Fund (ACRED) is the first fund of its type to launch on Sei, representing a significant move into blockchain-powered financial products. With a total value of $112 million, the fund acts as a feeder for Apollo’s larger private credit initiatives, which include corporate loans, asset-backed transactions, and opportunities in distressed credit. Only accredited investors can participate, requiring a minimum commitment of $50,000, with access managed solely through Securitize Markets, the company’s broker-dealer arm.

The ACRED fund’s tokenization utilizes

, a protocol for cross-chain interoperability, allowing tokens to move effortlessly across six different blockchain platforms: , , , Ink, Polygon, and . This multi-chain strategy boosts both liquidity and ease of access, reflecting the increasing shift toward digital versions of traditional financial assets. Christine Moy, a partner at Apollo and head of digital assets, highlighted that this project “opens up new opportunities for investors to engage in private credit” and helps drive digital transformation in the industry. Apollo’s work with Securitize follows earlier blockchain initiatives, including collaborations with Figure Technologies and JP Morgan’s Kinexys group.

Securitize, which is supported by BlackRock and has previously tokenized assets for companies such as KKR and VanEck, has now surpassed $3 billion in tokenized real-world assets. CEO Carlos Domingo pointed out the rising interest in tokenized fixed-income investments, noting that Apollo’s private credit expertise was a key reason for the partnership. The ACRED fund is structured as a non-traded, closed-end interval fund, aiming to provide consistent returns and capital growth with minimal volatility, making it attractive to those seeking diversified blockchain-based investments. For investors native to crypto, Moy described ACRED as a “higher-yield alternative to stablecoins and tokenized treasuries,” offering a way to manage risk in unpredictable markets.

The RWA sector has now exceeded $30 billion in value, propelled by blockchain’s efficiency in settlement and its ability to reduce the need for intermediaries. Apollo’s entry into tokenized private credit signals a broader trend of institutional adoption of blockchain technology, with Securitize planning to introduce more funds on Sei soon. Early backers of ACRED include Coinbase Asset Management and Kraken, highlighting the growing interest in tokenized investment options within the digital asset space. Launching the fund on Sei, a blockchain designed for high-performance DeFi applications, further demonstrates the platform’s increasing importance in institutional finance.

Experts in the field see this as a significant step in merging traditional finance with blockchain technology. By bringing private credit onto the blockchain, Apollo and Securitize are tackling challenges related to liquidity and market access, while taking advantage of blockchain’s transparency and programmable features. As regulations around tokenized assets continue to develop, such projects could lead to wider acceptance of RWAs, changing how investors approach alternative investments. The collaboration also underscores Sei’s rise as a center for institutional blockchain solutions, positioning it alongside established networks like Ethereum and Solana.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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