Securitize and Apollo Global Management Join Forces to Tokenize Private Credit
The BlackRock-backed tokenized real world assets platform, Securitize, has entered a promising collaboration with New York Stock Exchange-listed company, Apollo Global Management. The primary objective of this partnership is to bring private credit on the blockchain technology, symbolizing significant progress for the asset digitization sector.
Launch of Apollo Diversified Credit Securitize Fund
A significant outcome of this collaboration is the unveiling of the Apollo Diversified Credit Securitize Fund, also known as ACRED, on January 30. This innovative feeder fund takes a proactive step towards accelerating the adoption of blockchain technology in the private credit sector.
The Investment Opportunity
ACRED is a unique investment vehicle, representing a non-traded, closed-end interval fund. It is designed to cultivate a diverse investment environment for both institutional and accredited investors. The innovation behind the fund allows for a captivating blend of income and capital appreciation. The ACRED fund will be accessible to qualified investors via Securitize Markets, the distinct broker-dealer division of Securitize.
A Diversified Credit Strategy
Investors leveraging the services of ACRED fund will have direct exposure to a diversified credit strategy. This strategy embodies investments in asset-backed lending and corporate direct lending. It also extends to performing, dislocated, and structured credit, all under the robust infrastructural backing of blockchain technology.
The Structuring of ACRED
The ACRED fund is structured as a non-traded, closed-end interval fund. In its core, it aims to ensure steady income and capital appreciation while focusing on maintaining low volatility. It consequently presents an interesting opportunity for investors looking for assets displaying a lower correlation with broader financial markets.
Insights from the CEO of Securitize
Carlos Domingo, the co-founder and CEO of Securitize, gives his insights into the partnership, stating that the future demand for tokenized assets lies in the domain of fixed income, which includes private credit. He further adds that Apollo’s deep-rooted knowledge and expertise in private credit makes them a perfect partner for bringing real-world assets (RWA) in the tokenized landscape. It essentially enables broader opportunities for investors, unlocking potential for diversified and efficient investments.
Date of Deployment on Select Blockchain Networks
The ACRED fund is set to go live initially on specific blockchain networks. These include renowned players such as Ethereum (ETH), Solana (SOL), and Aptos (APT), all household names in the blockchain sphere. The collaboration also points towards other networks like Avalanche, Polygon, and Ink, the layer-2 blockchain by the popular cryptocurrency exchange, Kraken.
Added support for multiple chains will allow Securitize to leverage the revolutionary Wormhole’s interoperability technology. Doing so will facilitate seamless token transfers across different blockchain networks, further enhancing the efficiency of their services.
The Future of Tokenization and Private Credit
This promising collaboration between Securitize and Apollo Global Management symbolizes a significant stride in the path of asset tokenization. The effective use of blockchain technology alongside tokenized real-world assets shows immense potential for the financial sector. As a consequence, it allows investors to access exclusive investment opportunities and a diversified credit strategy. This sets a strong precedent for future partnerships and collaborations aimed at digitizing and bringing traditional asset classes to blockchain technology.
In conclusion, the integration of advanced technological solutions in the financial sector is set to reshape the investment landscape, presenting investors with unique and diversified opportunities.
