Tokenization firm Securitize has entered into a strategic partnership with alternative asset manager Apollo Global, which manages assets worth $512 billion, to introduce a tokenized version of one of its funds. Through this initiative, Securitize is developing a new tokenized feeder fund for the Apollo Diversified Credit Securitize Fund (ACRED). Following the integration of Securitize with the blockchain interoperability protocol Wormhole, the fund will be accessible on six different blockchain networks.
As with other funds managed by Securitize, this offering is limited to accredited investors, with a minimum investment requirement of $50,000. The fund can only be accessed via Securitize Markets, which serves as the broker-dealer. Securitize has previously played a key role in the tokenization of other major financial products, including BlackRock’s BUIDL money market fund and feeder funds associated with Hamilton Lane and KKR. Notable early investors in ACRED include Coinbase Asset Management and Kraken.
Enhancing Cross-Chain Interoperability
Securitize has also recently implemented the Wormhole protocol to enhance cross-chain interoperability. Established by Jump Crypto, a division of Jump Trading, and supported by firms such as Brevan Howard, Wormhole facilitates transactions across more than 30 blockchain networks. Initially, ACRED will be available on Aptos, Avalanche, Ethereum, Ink, Polygon, and Solana. The Wormhole protocol functions by securing tokens on their native blockchain and generating wrapped versions on other supported chains, thereby ensuring seamless asset transfers across networks.
Industry experts have noted that this development not only introduces an on-chain solution for the Apollo Diversified Credit Fund but also has the potential to expand accessibility to private markets through next-generation financial innovations. Additionally, the initiative is expected to enhance secondary market liquidity and improve operational efficiency over time.
Apollo’s Continued Blockchain Engagement
Apollo has been actively exploring blockchain technology since 2021 when it established a partnership with Figure Technologies, the creator of the Provenance blockchain. Subsequently, Apollo made strategic investments in the sector. In 2023, the company collaborated with JP Morgan to assess the potential of tokenization and personalized discretionary portfolios as part of the Singapore-based Project Guardian initiative. These efforts reflect Apollo’s commitment to leveraging blockchain for financial innovation and improved asset management strategies.
