💡Thesis
Disrupting the private credit market
Private Credit is $1.7T market where non-banking lenders issue loans to asset originators and corporates. However, it has been plagued with rent seeking intermediaries and broken TradFi infrastructure rendering it expensive, inefficient for the participants. Tokenization of RWAs has been on the rise and Tokenized private credit has rapidly grown to become the largest Real-World Asset (RWA) category after stablecoins, boasting $9.75 billion in active loans and $16.48 billion in total loans issued to date. This impressive growth signals that the market is not just a trend—it’s here to stay.
We believe that tokenization address a fundamental issue in private credit: illiquid assets and limited accessibility. By transitioning assets from off-chain ledgers to on-chain systems, they become modular "money legos," enabling the creation of diverse financial products. This innovation allows anyone holding stablecoins to invest in previously inaccessible private credit opportunities, thereby making the illiquid assets more liquid and accessible.
But before that, why tokenize private credit ?
Private credit provides attractive risk-adjusted yield opportunities for on-chain investors.
Tokenization simplifies access, allowing retail investors to tap into private credit markets that were once limited to institutional players.
Blockchain and smart contracts enhances transaction efficiency for the asset originators and investors by eliminating intermediaries. e.g 97% cost reduction for securitisation on centrifuge
Last updated