In an exciting development for the investment landscape, DigiFT, a licensed on-chain exchange based in Singapore, has announced a partnership with Invesco to provide a unique tokenized investment solution. This initiative allows accredited and institutional investors direct access to one of Invesco's private credit strategies through the DigiFT platform, marking a significant breakthrough in the evolution of digital assets in Southeast Asia.
Introduction to the Innovation
DigiFT is set to launch a DigiFT token which will serve as a bridge for investors to tap into Invesco's renowned private credit strategies. Unlike any other offerings in the region, this token provides daily trading capabilities, positioning it as a leader in the growing market of tokenized assets.
Access and Flexibility
The DigiFT tokens will cater specifically to accredited and institutional investors, who will have the flexibility to make subscriptions and redemptions in both traditional fiat currencies such as USD and stablecoins like USDC and USDT. This accessibility opens up the doors to institutional-grade investments that were previously difficult to navigate for many investors.
The investment strategy behind these tokens focuses on generating a high level of current income while ensuring capital preservation. The DigiFT team plans to invest primarily in senior secured loans to companies boasting stable cash flows and strong asset coverage, providing a solid foundation for potential returns.
The Growing Appeal of Private Credit
The rise of private credit as an attractive alternative investment class is reflected in recent statistics, indicating that it comprises 68% of tokenized real-world assets—far surpassing traditional holdings such as U.S. Treasury Securities. As interest rates for U.S. Treasuries are anticipated to decline from their recent peaks, private credit's allure is expected to grow even more.
DigiFT aims to be at the forefront of this trend, positioning itself as a preferred partner for leading institutional players. Recently, DigiFT was also named an authorized distributor for another global asset manager's first-ever tokenized money market fund, further solidifying its role in the tokenization landscape.
Expert Insights
"We believe that effective collaboration with top-tier partners is crucial to bringing premium assets on-chain rather than merely being the first to market," stated Henry Zhang, the Founder and CEO of DigiFT. This perspective emphasizes the importance of fostering reliability and quality in the development of digital financial assets.
Invesco's leadership in the partnership, particularly through Noelle Lim, CEO of Singapore and Head of Private Banks at Invesco, echoed this sentiment. "As distributed ledger technology continues to advance, the tokenization of funds represents one of the most transformative trends within the asset management sector. This partnership enables more diversified investment opportunities for a wider audience of investors."
Future Partnerships
To facilitate access for institutional players, DigiFT has partnered with a range of custodians including Copper, Komainu, Rakkar, and Zodia. This strategic move aims to create seamless access to tokenized real-world assets (RWAs) for Web3 asset managers, hedge funds, and decentralized autonomous organizations (DAOs).
DigiFT is strongly motivated to expand its network by seeking collaborations with additional issuers, decentralized finance (DeFi) protocols, decentralized applications (dApps), and various Web3 ecosystems. This would allow a broader participant pool to access institutional-grade RWA yields on-chain.
Conclusion
This collaboration between DigiFT and Invesco not only signifies a remarkable advancement in the financial technology space but also showcases the increasing shift towards tokenization in investment. By aligning with reputable partners and leveraging innovative technologies, DigiFT is setting a precedent for the future of asset management, making high-quality investment opportunities accessible to a larger pool of investors than ever before.
For additional information about DigiFT and their offerings, please visit
www.digift.sg.