Apollo, an investment firm managing assets exceeding $730 billion, is making waves in the financial sector by offering a new tokenized private credit fund in collaboration with security token specialist Securitize. This innovative venture is accessible through the Apollo Diversified Credit Securitize Fund (ACRED) feeder fund, marking the first public on-chain offering for accredited investors from Apollo, along with being Securitize’s inaugural integration with the Solana blockchain and the Ink layer-2 network developed by Kraken. Additionally, initial launchpads for this tokenized fund include Ethereum, Aptos, Avalanche, and Polygon.
The Apollo Diversified Credit Fund currently oversees managed assets exceeding $1.2 billion and focuses its investments on corporate direct lending, asset-backed finance, and structured credit. The fund’s impressive performance yielded an 11.7% return in 2024, significantly surpassing the approximately 4.5% return on U.S. Treasuries.
Christine Moy, a partner at Apollo overseeing digital assets, data, and AI strategy, highlighted the fund’s daily subscription and daily net asset value (NAV) structure, tailoring it for a smooth operation within blockchain markets. “For those trying to build a diversified portfolio on-chain, it serves as a higher-yielding complement to stablecoins, tokenized treasuries, and money market funds,” Moy stated in a recent interview. She emphasized the fund’s role as a diversifier to existing, more volatile crypto-native yield products.
The trend of tokenizing real-world assets (RWAs) has gained momentum among traditional finance firms, with blockchain-based U.S. Treasuries emerging as the largest and most liquid marketplace. As of 2023, the total global private credit assets under management soared to approximately $2.1 trillion, illustrating a fourfold increase over the past decade, according to Securitize.
Although private credit tokens are still relatively uncommon, they pave the way for new on-chain asset opportunities, asserted Securitize CEO Carlos Domingo. He remarked, “Private credit is an area that’s been exploding of late, and we have been among the pioneers in this area of tokenization having already launched a top-tier private credit fund token with Hamilton Lane. Private credit with a higher yield is a good complement to treasuries, especially in a scenario with interest rates coming down.”
As a notable player in the tokenization landscape, Securitize also serves as the tokenization partner of BlackRock, acting as the digital transfer agent for the asset manager’s BUIDL money market fund token. For Apollo, Securitize leverages its collaboration with Wormhole, a developer platform facilitating communication between different blockchain networks, to implement a multichain approach from the outset.
Apollo has been proactive in experimenting with tokenized asset scenarios, having participated in a proof of concept last year with JPMorgan, which was part of a broader initiative led by the Monetary Authority of Singapore (MAS). Moy, who has been influential in blockchain strategies throughout her tenure and previously worked on JPMorgan’s initiatives, expressed enthusiasm in exploring decentralized finance (DeFi) opportunities in the near future.
“Tokenizing Apollo’s products is just the beginning,” said Moy. “We’re excited to collaborate with leading teams in the digital assets ecosystem to design modern treasury management, automatically rebalancing investment portfolios at scale, smart contract-driven collateral management, and in the future, potentially enabling secondary liquidity for alternative assets.”
