In order to provide investors access to a variety of high-yield private credit assets, Apollo Global Management has linked up with the blockchain tokenizing platform Securitize. Tokenizing assets from the Apollo Diversified Credit Fund, which comprises investments in corporate direct lending and asset-backed loans, this new fund is called the Apollo Diversified Credit Securitize Fund (ACRED).
The purpose of the ACRED fund is to provide eligible investors with access to the recently expanded private credit market. With a varied portfolio, the fund has achieved outstanding returns—more than 11% yearly over the past year. Tokenizing these assets helps the fund create fresh opportunities for more access and liquidity in private marketplaces.
The way this product runs across several blockchain systems—including Ethereum, Solana, Avalanche, Polygon, and Aptos—is one major novelty. By means of this multi-chain method, the fund may reach a wider spectrum of investors and enable flawless transactions across several blockchain environments. This is also the first time Securitize has started tokenizing money on a Layer 2 blockchain, Solana and Ink.
Apollo’s Christine Moy underlined that the tokenization of this private credit fund might open the path for more general involvement in private markets, particularly by improving liquidity and so increasing the availability of the assets. Offering a consistent income while keeping a minimal correlation to more general market trends, the fund is positioned as an appealing substitute for investors wishing to diversify their portfolios outside conventional assets.
Tokenization is considered a game-changer, opening new possibilities and improving the efficiency of the market as the private credit market keeps expanding. A major step forward in placing real-world assets ( RWAs) on-chain and possibly upsetting established finance and generating more varied investment alternatives for authorized investors is the arrival of ACRED.
