Invesco’s iSNR Token Launches on Arbitrum, Expanding Institutional Access to Onchain Credit Markets

DigiFT, a digital asset exchange, has launched Invesco’s tokenized private credit strategy on Arbitrum, a popular Ethereum layer-2 network. This move expands the use cases of real-world assets (RWA) and provides institutional investors with access to onchain credit markets. The tokenized fund, iSNR, tracks the performance of a private credit strategy managed by Invesco, a publicly traded investment manager based in Atlanta, Georgia. The iSNR token was launched on February 19 and is designed to mirror the performance of a private credit fund managed by Invesco. At the time of launch, the Invesco fund had $6.3 billion in assets under management.

DigiFT has described the iSNR token as the “first and only tokenized private credit strategy.” The tokenized fund has a minimum investment of $10,000. DigiFT CEO Henry Zhang highlighted that adding iSNR to Arbitrum increases its utility by allowing decentralized finance (DeFi) applications, decentralized autonomous organizations (DAOs), and institutional investors to integrate with a regulated, onchain private credit strategy. Consistent with the initial launch of iSNR on Ethereum last month, investors on Arbitrum can purchase tokenized shares using popular stablecoins USDC and USDT.

The launch of the iSNR token on Arbitrum is part of a broader trend of RWA tokenization gaining traction despite the recent crypto market downtrend. Positive regulatory developments, the rise of liquid multichain economies, and innovations in decentralized exchanges are expected to push RWA tokenization into the crypto limelight this year. Earlier this week, Securitize announced that oracle provider RedStone will deliver price feeds for its tokenized products, including the BlackRock USD Institutional Liquidity Fund and the Apollo Diversified Credit Securitize Fund. This integration allows Securitize’s funds to be utilized across various DeFi protocols.

Meanwhile, asset manager Franklin Templeton has launched a tokenized money fund on the Coinbase layer-2 network Base and a US government money fund on Solana. Private credit and US Treasury debt have dominated real-world asset tokenization so far. The expansion of Invesco's iSNR token to Arbitrum is a major step in bridging institutional finance with decentralized technology, as noted by Steven Goldfeder. This development underscores the growing integration of traditional financial instruments with blockchain technology, offering new opportunities for institutional investors to participate in the decentralized finance ecosystem.