Apollo Launches First Tokenized Private Credit Fund on Solana

Apollo, a prominent investment firm with over $730 billion in assets under management, has unveiled a tokenized private credit fund, marking a significant step in the integration of blockchain technology with traditional finance (TradFi). The fund, Apollo Diversified Credit Securitize Fund (ACRED), is the first public on-chain offering for accredited investors from Apollo and the first integration with the Solana blockchain and Ink, a layer-2 network built by Kraken, for Securitize.

The tokenized fund, accessed via the ACRED feeder fund, invests in corporate direct lending, asset-backed finance, and performing, dislocated, and structured credit. With over $1.2 billion in managed assets, the fund delivered an 11.7% return in 2024, outperforming U.S. Treasuries. Christine Moy, a partner leading digital assets, data, and AI strategy at Apollo, highlighted the fund's daily subscription and daily net asset value (NAV) structure, which is well-suited for seamless and efficient blockchain-based markets.

Moy noted that the fund serves as a higher-yielding complement to stablecoins, tokenized treasuries, and money market funds, as well as a diversifier to more volatile crypto-native yield products. This makes it an attractive option for those seeking to build a diversified portfolio on-chain. Carlos Domingo, CEO of Securitize, the tokenization partner for this project, emphasized the growing interest in private credit tokenization, with global private credit assets under management reaching approximately $2.1 trillion in 2023.

Securitize, in partnership with Wormhole, offers a multichain approach for the Apollo token, making it available on Ethereum, Aptos, Avalanche, and Polygon, in addition to Solana and Ink. Apollo has previously participated in tokenized asset proofs of concept, such as a project with JPMorgan under the auspices of Project Guardian. Moy expressed excitement about future collaborations in areas like decentralized finance (DeFi), modern treasury management, and the enablement of secondary liquidity for alternative assets.