Apollo Tokenizes Private Credit to Bridge Traditional and Digital Finance

Apollo Global Management, a leading alternative asset manager with $512 billion in assets under management, has launched a tokenized private credit fund on the Sei blockchain through its partnership with Securitize, a real-world asset (RWA) tokenization platform. The Apollo Diversified Credit Securitize Fund (ACRED) is the first of its kind to debut on Sei, marking a strategic expansion into blockchain-based financial instruments. The fund, which has $112 million in total value, serves as a feeder into Apollo’s broader private credit strategy, encompassing corporate lending, asset-backed deals, and dislocated credit opportunities. Access is restricted to qualified investors with a minimum investment of $50,000, facilitated exclusively through Securitize Markets, the firm’s broker-dealer division.

The tokenization of ACRED leverages Wormhole, a cross-chain interoperability protocol, enabling seamless token transfers across six blockchain networks: Aptos, Avalanche, Ethereum, Ink, Polygon, and Solana. This multi-chain approach enhances liquidity and accessibility, aligning with the growing trend of digitizing traditional financial assets. Christine Moy, Apollo’s partner and head of digital assets, emphasized the initiative’s role in “unlocking new pathways for investor participation in private credit” and accelerating digital innovation in the sector. Apollo’s collaboration with Securitize builds on its prior blockchain experiments, including partnerships with Figure Technologies and JP Morgan’s Kinexys division.

Securitize, backed by BlackRock and previously tokenizing assets for firms like KKR and VanEck, has now tokenized over $3 billion in real-world assets. CEO Carlos Domingo highlighted the shift in demand toward tokenized fixed-income products, noting Apollo’s expertise in private credit as a critical factor in the partnership. The ACRED fund’s structure as a non-traded, closed-end interval fund aims to offer steady income and capital appreciation with low volatility, appealing to investors seeking diversified, on-chain opportunities. For crypto-native investors, Moy described ACRED as a “higher-yielding complement to stablecoins and tokenized treasuries,” balancing risk in a volatile market.

The RWA market has surpassed $30 billion in value, driven by blockchain’s ability to streamline settlements and reduce intermediaries. Apollo’s foray into tokenized private credit reflects broader institutional adoption of blockchain infrastructure, with Securitize planning to launch additional funds on Sei in the near term. Early investors in ACRED include Coinbase Asset Management and Kraken, underscoring the appeal of tokenized alternatives in the digital asset ecosystem. The fund’s deployment on Sei, a high-performance blockchain optimized for DeFi, further underscores the platform’s growing role in institutional-grade financial products.

Industry analysts view this development as a milestone in the convergence of traditional finance and blockchain. By tokenizing private credit, Apollo and Securitize are addressing inefficiencies in secondary market liquidity and access, while leveraging blockchain’s transparency and programmability. As regulatory frameworks for tokenized assets evolve, such initiatives may pave the way for broader adoption of RWAs, transforming how investors interact with alternative assets. The partnership also highlights Sei’s emergence as a hub for institutional blockchain solutions, competing with established networks like Ethereum and Solana.