DigiFT will offer one of the US fund giant’s senior secured loan strategies in tokenised format.

Singaporean digital assets platform DigiFT has partnered with Invesco to launch a tokenised version of one of the fund giant’s US private credit strategies, with daily liquidity.

Accredited investors will be able to access the tokenised version of an existing $6.3bn Invesco senior secured loan strategy.

The launch, due by March, is the maiden tokenised alternatives strategy for DigiFT, which makes traditional finance products available on-chain. The firm’s founder and CEO Henry Zhang aims to work with a range of fund partners to build out a suite of products.

‘That’s the first but the intention is there will be a rich supply from the reputable names,’ Zhang told Citywire Asia. ‘We’re dedicated to that because we believe it’s the future, more and more things are moving on-chain, just like 30 years ago, step by step, things moving online.’

DigiFT partnered with UBS Asset Management to distribute the Swiss giant’s first tokenised fund, a money market product, uMint, in November. The platform also offers tokenised US Treasury investments and bank bonds.

Asset managers and banks have been increasingly looking at tokenisation as a way to broaden their distribution. The format has proven popular with alternatives managers, enabling them to offer strategies such as private markets, hedge funds and wine at a much lower ticket size through the technology. The minimum investment for the Invesco fund token will be confirmed at launch.

Zhang also sees significant benefits in using blockchain to improve liquidity in strategies that often only allow monthly or quarterly redemptions. The Invesco fund offers daily liquidity, but with T+5 settlement, meaning it takes up to five days to complete the transaction.

‘You can create a liquidity pool and provide 24/7 liquidity and settle in seconds. That’s the feature we want to launch as a next step,’ Zhang said. The firm is talking to funding providers for the liquidity pool, which over time would be used less if volume builds in the secondary trading market.

Secondary market trading in fund tokens remains thin, as the fledgling technology remains niche.

Zhang sees the surge in popularity of cryptocurrency investing, which has gained added momentum by hopes US president Donald Trump will ease regulation, as a positive for on-chain TradFi investments.

‘They’re not competing and are complementing each other. We use blockchain and Web3 as a way to further upgrade and digitise the current financial market,’ he said. ‘Crypto is good, but doesn’t do everything, for example it usually does not provide a consistent cashflow, so the crypto investors want to diversify into real-world assets.’

DigiFT received its regulatory permissions from the Monetary Authority of Singapore, including a capital markets services license, last year. It is a graduate of MAS’s regulatory sandbox, which enables companies to road-test new technologies in a regulated environment.

The company raised $10.5m in November to fund its expansion, with its backers including Fosun Group co-founder Liang Xinjun’s Xin Enterprise investment company and venture capital firms Shanda Group and Hash Global.

Originally published on Citywire on 19 February 2025.