Securitize and Apollo’s groundbreaking partnership introduces ACRED, a tokenized feeder fund providing institutional and accredited investors access to Apollo’s diversified global credit strategy across multiple blockchains.
Securitize, a leading tokenization platform, has announced a partnership with Apollo, a prominent investment firm that has a substantial $730 billion in assets under management (AUM). The two aim to debut tokenized investment opportunities and unveiled a new tokenized private credit fund that can be accessed via the Apollo Diversified Credit Securitize Fund (ACRED), setting up an example for the integration of traditional finance and blockchain technology.
According to a press release, Securitize, which has issued more than $1 billion in tokenized assets, introduced the feeder fund ACRED on Thursday. ACRED will provide access to the Apollo Diversified Credit Fund, described as “a diversified global credit strategy investing across corporate direct lending, asset-backed lending, and performing, dislocated, and structured credit.”
It is important to mention here that industry participants expect the tokenization sector to soar to a trillion-dollar value by the end of 2023. While the sector was worth $118.6 billion by September 2024, market experts believe that a huge potential for expansion lies in the real-world asset tokenization.
Securitize Provides a Deeper Explanation
According to a post on social media platform X (formerly Twitter), the goal of the partnership between Securitize and Apollo is to provide tokenized private credit to “institutional and accredited investors.” Notably, ACRED is now available on leading blockchain networks, including Aptos, Avalanche, Ethereum, Kraken’s Ink, and Solana.
Securitize x Apollo – Tokenizing Private Credit & Expanding On-Chain Finance
Today, we’re announcing a major milestone in on-chain private credit.
Securitize has partnered with @apolloglobal to launch the Apollo Diversified Credit Securitize Fund $ACRED, bringing tokenized… pic.twitter.com/DuM6yvADRC
— Securitize (@Securitize) January 30, 2025
However, moving the tokens freely across these different blockchain networks could become a hassle, but Securitize has got that part fixed as well. The firm will use Wormhole, its official interoperability partner, allowing easy transfer of tokens from one blockchain network to the other.
Securitize added in the X post that the initiative “represents a significant step in expanding access to alternative credit strategies.” Earl Hunt, a partner at Apollo, also named as the President of Apollo Diversified Credit Fund, said:
“This partnership and launch with Securitize is an exciting milestone in our journey to make private markets more accessible and efficient, including Apollo Diversified Credit Fund, which offers diversified exposure to a range of corporate and asset-backed credit.”
Additionally, the co-founder and chief executive of Securitize, Carlos Domingo, revealed that the “next wave of demand for tokenized assets has emerged around fixed income, including private credit,” while adding that the partnership with Apollo will yield positive results for the firm.
Popularity of the RWA Sector
The RWA sector has experienced massive demand during the current cycle. Prominent projects like Ondo Finance ONDO $0.83 24h volatility: 1.6% Market cap: $2.64 B Vol. 24h: $158.56 M and Mantra OM $0.77 24h volatility: 5.5% Market cap: $753.71 M Vol. 24h: $803.33 M , among others, have achieved significant valuation this cycle, aiming for higher prices in the coming days. Data shows that a whopping $16.98 billion in assets have been tokenized on-chain to date, a 12.11% increase in the past 30 days.
Moreover, as per CoinMarketCap data, the RWA sector is valued at a substantial $73.51 billion, led by blockchain oracle protocol Chainlink LINK $12.36 24h volatility: 0.2% Market cap: $7.89 B Vol. 24h: $319.42 M . The trading volume in the sector has soared 37% in the past day and in the past 24 hours, with a staggering $3.95 billion in RWA tokens traded in the sector.
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