Apollo Launches Tokenized Private Credit Fund with Securitize

Apollo Expands into Tokenized Assets

Apollo, a leading investment firm managing over $730 billion in assets, has launched a groundbreaking tokenized private credit fund in partnership with Securitize, a pioneer in security tokenization. This initiative represents Apollo's first public on-chain offering, specifically through the Apollo Diversified Credit Securitize Fund (ACRED) feeder fund. The fund will be available on multiple blockchains, including Solana, Ethereum, Aptos, Avalanche, and Polygon.

Fund Performance and Strategy

The Apollo Diversified Credit Fund manages over $1.2 billion in assets, focusing on corporate direct lending, asset-backed finance, and various credit strategies. It has delivered an impressive 11.7% return in 2024, significantly outperforming the 4.5% yield of U.S. Treasuries. Christine Moy, Apollo's partner leading digital assets, data, and AI strategy, highlighted the fund's alignment with blockchain efficiencies, offering daily subscriptions and net asset value (NAV) structures.

Market Trends and Opportunities

The tokenization of real-world assets (RWAs) is gaining momentum in traditional finance, with blockchain-based U.S. Treasuries emerging as a major market. The global private credit sector has grown to $2.1 trillion, quadrupling in the last decade. Securitize CEO Carlos Domingo noted the rising interest in private credit as a high-yield alternative to treasuries, particularly during declining interest rates.

Strategic Partnerships and Innovation

Securitize, leveraging its partnership with Wormhole, a cross-blockchain communication platform, enables Apollo's multichain approach from the outset. Apollo has also explored tokenized assets through initiatives like Project Guardian, led by the Monetary Authority of Singapore (MAS), in collaboration with JPMorgan. Moy emphasized Apollo's commitment to decentralized finance (DeFi) and the potential for secondary liquidity in alternative assets.

This collaboration underscores the growing convergence of traditional finance and blockchain technology, offering investors diversified, high-yield opportunities in a rapidly evolving financial landscape.