Apollo selects Securitize's tokenization platform for the launch of a credit fund based on digital tokens.
In a significant move towards the tokenization of real-world assets, U.S. asset management firm Apollo has launched its first on-chain tokenized fund, the Apollo Diversified Credit Securitize Fund (ACRED). This groundbreaking fund is a partnership between Apollo and Securitize, an asset tokenization platform.
The ACRED fund, which is available on Ethereum, Aptos, Avalanche, and Polygon from its first day of launch, marks Apollo's first foray into real-world asset tokenization. The fund, primarily chosen for its nature as a large and rapidly expanding asset class, is a valuable candidate for tokenization, aiming to tap into more efficient liquidity and access.
Apollo's role as a liquidity provider in the private credit market played a key role in the fund's creation. The firm acts as a liquidity provider by selling private credit instruments to the fund and committing to repurchase them, supporting fund stability and liquidity management through the tokenized structure.
The Apollo Diversified Credit Fund offers daily Net Asset Value (NAV) pricing and instant redemptions via a liquidity pool. These features enhance investor access and integration with decentralized finance (DeFi) ecosystems, aligning with industry trends towards multichain accessibility and DeFi-compatible investment vehicles.
Christine Moy, a partner at Apollo, stated that the Apollo Diversified Credit Fund's daily subscription and daily net asset value structure is well-suited for blockchain-based markets. She further explained that the fund can complete the picture of the different assets needed in an on-chain diversified portfolio.
The ACRED token, the first public on-chain offering for accredited investors of Apollo, serves as a higher yielding complement to stablecoins, tokenized treasuries, and money market funds in on-chain portfolios. It can help diversify the more volatile crypto native yield products, providing a stable investment option for investors.
Securitize, which has previously been invested in by major firms like BlackRock, is leveraging its partnership with Warmhole to deploy Apollo's tokenized fund across multiple blockchains. This partnership also marks the first integration for Securitize with the Solana blockchain and Kraken's layer-2 network, Ink.
Other firms, such as Franklin Templeton, have shown interest in real-world asset tokenization, following Apollo's lead in this innovative and growing trend in the financial industry. The Apollo Diversified Credit Fund is a significant step towards bringing traditional private credit investments closer to blockchain-enabled markets.
The Apollo Diversified Credit Fund, which offers daily Net Asset Value (NAV) pricing, allows investors to access and integrate with decentralized finance (DeFi) ecosystems. In this regard, the fund's structure aligns well with the rising trend of multichain accessibility and DeFi-compatible investment vehicles.
The ACRED token, a public on-chain offering for accredited investors of Apollo, serves as a stable investment option, providing diversification for more volatile crypto native yield products and acting as a higher yielding complement to stablecoins, tokenized treasuries, and money market funds in on-chain portfolios.
