Digital asset exchange DigiFT has introduced Invesco’s tokenized private credit strategy on Arbitrum, further broadening the application of real-world assets (RWA) and providing institutional investors access to on-chain credit markets.
As announced on March 13, Invesco’s US Senior Loan Strategy (iSNR) token is now operational on Arbitrum, a well-regarded Ethereum layer-2 network.
The tokenized asset was initially launched on February 19 and aims to mirror the performance of a private credit fund managed by Invesco, an investment management firm based in Atlanta, Georgia, and publicly traded.
When it launched, the Invesco fund was reported to have $6.3 billion in assets under management.
DigiFT has characterized the iSNR token as the “first and only tokenized private credit strategy.”
DigiFT’s CEO, Henry Zhang, stated that introducing iSNR to Arbitrum enhances its functionality by enabling integration with regulated, on-chain private credit strategies for DeFi applications, DAOs, and institutional investors.
Similar to the original release of iSNR on Ethereum last month, investors on Arbitrum can acquire tokenized shares using popular stablecoins like USDC and USDT.
### The Rise of DeFi Tokenization
Despite recent downturns in the crypto market, the momentum for RWA tokenization seems to be growing, spurred by the introduction of various DeFi-focused products. Positive regulatory changes, the emergence of liquid multichain economies, and advancements in decentralized exchanges are likely to bring RWA tokenization to the forefront of the crypto space this year.
Earlier this week, a tokenization firm announced a partnership with oracle provider RedStone to supply price feeds for its tokenized offerings, which include the BlackRock USD Institutional Liquidity Fund and the Apollo Diversified Credit Securitize Fund.
This collaboration allows Securitize’s funds to be utilized across DeFi protocols like Morpho, Compound, or Spark, according to RedStone’s COO.
Furthermore, asset manager Franklin Templeton has launched a tokenized money fund on the Coinbase layer-2 network Base and a US government money fund on the Solana blockchain.
Recent data reveals that private credit ($12.2 billion) and US Treasury debt ($4.2 billion) have been the leading assets in the tokenization of real-world properties so far.
According to industry statistics, the overall value of on-chain RWAs has surged by 17.5% in the last month, reaching $18.1 billion, with private credit and US Treasury debt representing nearly 91% of that sum.