Victory Park Capital (VPC), an affiliate of Janus Henderson, has launched VALTS, a tokenized feeder fund providing eligible investors with blockchain-based access to its AltsABF private asset-backed credit fund. Developed with private asset marketplace and tokenization platform Tradable, VALTS will initially operate on the Stellar blockchain. The launch highlights how alternative asset managers are using tokenization to expand distribution and modernize fund administration while retaining investment structures, investor eligibility rules and liquidity restrictions associated with private credit.

VPC Brings Private Asset-Backed Credit On-Chain

Tokenization is gaining traction among alternative asset managers looking to modernize how private investment products are distributed and administered. Victory Park Capital’s launch of VALTS adds another example: rather than placing individual loans directly on a blockchain, the firm is using a tokenized feeder fund to give eligible investors access to an existing private credit strategy.

VPC, an affiliate of Janus Henderson, announced the launch of AltsABF Tokenized Feeder Fund, L.P., known as VALTS. The fund invests in Privacore VPC Asset Backed Credit Fund, or AltsABF, a continuously offered, non-listed, closed-end interval fund focused on private asset-backed credit. Tradable is providing the tokenization platform, with VALTS initially available on the Stellar blockchain network.

The structure gives eligible investors tokenized access to a diversified portfolio of private asset-backed credit investments through an investment in AltsABF. VALTS is a private fund, distinct from the underlying interval fund, and investors’ rights and liquidity depend on the feeder fund’s governing documents and the underlying fund’s arrangements.

A tokenized route into private credit

AltsABF launched in January 2026 to provide investors with exposure to private asset-backed credit through a continuously offered registered interval fund. VALTS adds a blockchain-based access layer to that strategy.

Private asset-backed credit involves lending secured by assets or pools of receivables, rather than relying solely on a borrower’s general creditworthiness. Depending on the portfolio, such strategies can include financing tied to consumer, commercial or other asset-backed exposures. The announcement does not detail AltsABF’s individual holdings, so its precise asset mix and risk profile cannot be assessed from the launch information alone.

In a traditional fund structure, ownership records, investor onboarding, transfers and distributions rely on fund administration and financial infrastructure. Tokenization can represent fund interests as digital tokens, potentially supporting digital ownership records and transfers among permitted holders.

VPC says the launch responds to growing demand for on-chain investment products. The company first partnered with Tradable in 2023, when it supported the development and launch of Tradable’s platform for tokenizing private credit. Tradable says it has since tokenized $3 billion in private credit, though the announcement does not clarify whether that figure represents assets issued, transaction volume or another measure.

Stellar provides the initial blockchain infrastructure

VALTS will initially be available on Stellar, a blockchain network designed to support digital asset issuance and transfers. In this arrangement, the blockchain provides infrastructure for the tokenized fund interests; it does not itself remove the investment, legal or operational constraints of the underlying fund.

The structure includes several controls. VALTS is available to qualified purchasers in the United States, subject to onboarding, know-your-customer and anti-money-laundering checks, jurisdictional eligibility and applicable securities laws. Token transfers are restricted to pre-approved investors, and holders can choose from flexible custody options, according to VPC.

These conditions are significant because a tokenized fund interest is not equivalent to an unrestricted cryptocurrency. Investor eligibility, transfer approvals and the legal documentation governing ownership remain central to how the product can be held and transferred.

The model also differs from tokenizing a publicly traded stock. VALTS provides exposure through a private feeder fund that invests in another fund, creating an additional layer of fees, expenses and governing terms. Investors need to assess both the feeder and underlying fund arrangements when considering valuation, liquidity and risk.

Quarterly liquidity does not mean daily redemption

VALTS expects to offer quarterly liquidity, subject to its governing documents and AltsABF’s quarterly repurchase offers. The underlying fund’s offers are made for no less than 5% and no more than 25% of its outstanding shares, according to the announcement.

Those limits matter. Tokenization may make ownership records and permitted transfers more flexible, but it does not turn a fund with periodic repurchase arrangements into a continuously redeemable product. The availability of liquidity at the VALTS level depends on the fund’s terms and the underlying fund’s repurchase process.

VALTS is priced based on the net asset value of its investment in AltsABF, after VALTS-level fees and expenses. That means investors must account for the underlying fund’s valuation process as well as expenses at the feeder-fund level. The announcement does not provide specific fee rates or distribution yields.

The fund also expects to pay monthly income distributions directly to investors’ wallets in stablecoin. This is another example of blockchain infrastructure being used to deliver fund-related cash flows digitally. The announcement does not identify the stablecoin or specify the operational and redemption arrangements for those distributions.

Tokenization expands distribution, not underlying investment certainty

For asset managers, tokenized feeder funds can offer another way to distribute private investment products and manage digital ownership records. For investors, they may provide a more flexible custody and transfer experience, subject to eligibility restrictions.

But blockchain infrastructure does not eliminate private credit risks, including borrower defaults, collateral deterioration, valuation uncertainty and limited secondary-market liquidity. Nor does it guarantee that investors will be able to transfer tokens or receive cash whenever they choose.

The VPC–Tradable launch illustrates an incremental approach to tokenization: retain the existing investment strategy and regulated fund framework while adding blockchain-based access and distribution. Its longer-term significance will depend on investor adoption, operational reliability and whether the model improves access without obscuring fees, transfer restrictions or liquidity terms.

For the broader fintech market, VALTS is another signal that tokenization is moving from asset issuance into the distribution and administration of institutional investment products. The technology can change how fund interests are represented and transferred, but the underlying legal rights and liquidity conditions still determine what investors actually own and when they can access their capital.

Market Landscape

Tokenized private credit is developing at the intersection of alternative asset management, digital securities and blockchain-based financial infrastructure. Asset managers are exploring tokenization to modernize ownership records, distribution and investor servicing without necessarily changing the underlying investment strategy.

Three trends are shaping the market:

• Tokenized fund distribution: Feeder funds can provide blockchain-based access to existing investment strategies while preserving fund-level eligibility and governance requirements.
• Stablecoin-based distributions: Paying income distributions to digital wallets could streamline delivery, although the choice of stablecoin and redemption arrangements remains important.
• Permissioned blockchain markets: Institutional products require controls over investor eligibility, custody and transfers, limiting the extent to which tokens can circulate freely.

VALTS illustrates how asset managers can add a blockchain distribution layer to traditional private credit. Its potential appeal will depend on investor demand, operational efficiency and transparent fund terms. Tokenization itself does not guarantee greater liquidity, lower fees or improved investment performance.

Top Insights

• Victory Park Capital launched VALTS, a tokenized feeder fund investing in AltsABF, its private asset-backed credit interval fund.
• Tradable provides the tokenization platform, with VALTS initially available on the Stellar blockchain network.
• The fund expects quarterly liquidity, subject to its governing documents and the underlying fund’s quarterly repurchase offers.
• VALTS expects to pay monthly income distributions directly to investor wallets in stablecoin, according to the announcement.
• Access is limited to qualified purchasers in the United States who meet onboarding, KYC/AML, jurisdictional and securities-law requirements.

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