Apollo Global Management has introduced a tokenized private credit fund in collaboration with Securitize, expanding its presence in blockchain-based finance.
Apollo’s Tokenized Credit Fund Goes Live
On January 30, Apollo announced the launch of the Apollo Diversified Credit Securitize Fund (ACRED), which tokenizes shares of its existing Apollo Diversified Credit Fund. This fund comprises a variety of private credit assets, including direct corporate loans and asset-backed loans.
According to Apollo’s website, the fund has delivered an annualized return of over 11% in the past year and more than 5.5% since inception. However, access remains exclusive to qualified investors.
ACRED will operate across multiple blockchain networks, including Solana, Ethereum, Avalanche, Polygon, Aptos, and Ink. Notably, this marks the first time Securitize has launched tokenized funds on Solana or Ink.
Christine Moy, a partner at Apollo, emphasized that tokenization not only enables on-chain solutions for the fund but could also broaden access to private markets by improving secondary market liquidity.
The Growing Market for Tokenized Real-World Assets
Tokenized real-world assets (RWAs) represent a $30-trillion global market opportunity, according to Colin Butler, Polygon’s global head of institutional capital. He noted that as tokenization improves liquidity, alternative assets like private credit will see increased adoption.
The U.S. private credit market has expanded significantly, growing from $1 trillion in 2020 to an estimated $1.5 trillion by 2025. By 2028, projections suggest it could reach $2.8 trillion, according to Securitize.
Private credit currently dominates the total value locked (TVL) in tokenized RWAs, accounting for over $11 billion as of January 30, according to RWA.xyz.
Among the leading tokenized money market funds are:
- Hashnote Short Duration Yield Coin (USDY)
- BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
- Franklin OnChain US Government Money Fund (FOBXX)
Collectively, these tokenized money market funds command around $3.4 billion in TVL, reinforcing the growing role of blockchain in traditional finance.
