Apollo's Private Credit Fund Goes Blockchain-Enabled, Attracting Over $100M in Investments

Apollo Global Management has launched a blockchain-based private credit fund, ACRED, in partnership with Securitize Inc. The fund, linked to Apollo's traditional Diversified Credit Fund, has attracted over $100 million since January. Eligible investors can hold the token in digital wallets and use it for speculation by minting a derivative token called sACRED, which can be used to borrow stablecoins on DeFi platforms. The fund charges a 2% management fee and requires a $50,000 minimum investment.

Apollo Global Management Inc. has expanded its reach into the digital frontier with the launch of the Securitize Tokenized Apollo Diversified Credit Fund, or ACRED. This blockchain-based fund, in partnership with Securitize Inc., offers crypto-native investors access to one of Apollo's private credit strategies. Since its January launch, ACRED has attracted over $100 million in investments.

ACRED is a tokenized feeder fund linked to Apollo's traditional Diversified Credit Fund, which lends to mid-sized US companies. The fund is issued and recorded on blockchain infrastructure, allowing eligible investors to hold it in digital wallets. A key feature of ACRED is the ability to mint a derivative token called sACRED, which can be used to borrow stablecoins on decentralized-finance (DeFi) platforms. This creates a leverage loop, potentially amplifying returns [1].

The fund requires a minimum investment of $50,000 and charges a 2% management fee. Early investors include Coinbase Asset Management. ACRED joins a growing list of tokenized real-world assets from major players such as BlackRock Inc. and Franklin Templeton.

The investment offers two types of potential returns. First, the token's value tracks the performance of the real-world loans in Apollo's portfolio, and investors earn income from that debt. Second, sACRED can be used as collateral on DeFi lending platforms, adding the possibility of higher gains and a separate layer of risk [1].

While yields across DeFi have been falling, some investors are looking for fresh sources of market returns. The composability feature of DeFi allows investors to plug one financial instrument into another, broadening the investor base even when the overall rates environment is unfavorable to private credit [1].

The ACRED's tokenized nature introduces unique risks and challenges. The main protection against price volatility is the pricing mechanism, which values the tokens based on the Apollo fund's official daily net asset value. However, the DeFi ecosystem itself presents risks such as lending costs and software glitches. Additionally, a sudden drop in the Apollo fund's daily NAV could trigger automated liquidation of sACRED holdings [1].

The fund's limited liquidity, with quarterly redemption offers, is another challenge. However, the tokenized nature of ACRED allows holders to sell their tokens directly to other buyers, providing a solution to this problem [1].

The launch of ACRED marks a significant step in the integration of blockchain infrastructure into institutional finance. As the DeFi space matures, it is expected that more traditional funds will adopt blockchain technology to reach a new class of digital-native capital [1].

References:

[1] https://www.bloomberg.com/news/articles/2025-07-21/apollo-s-private-credit-trade-finds-new-audience-on-blockchain