Tokenized Private Credit Smashes Through $13B Barrier—Wall Street’s Old Guard Left Scratching Their Heads
Blockchain just bulldozed another financial milestone. Private credit—once the exclusive playground of institutional whales—has officially tokenized its way past $13 billion in value. Who needs middlemen when code cuts better deals?
The numbers don’t lie: TradFi’s ’exclusive’ debt markets are getting democratized one smart contract at a time. No paperwork. No gatekeepers. Just yield-hungry capital meeting borrowers on a blockchain—with all the efficiency (and none of the banker bonuses).
Of course, some suit in Manhattan is probably still arguing this ’crypto nonsense’ can’t possibly scale. Meanwhile, the ledger keeps printing.
Figure and Tradable
Figure, a company that has received investment from Morgan Creek Capital, Apollo, and Ribbit Capital, has over $12 billion in assets. It also runs a marketplace for Home Equity Line of Credit (HELOC) and helps clients borrow against their homes.
Tradable is the second-biggest player in the tokenized private credit industry. It boasts over $1.8 billion in on-chain assets. Backed by Parafi, Matter Labs, and Victory Park Capital, Tradable helps asset managers to tokenize their assets.
Tradable also helps individuals to participate in the private credit industry that has long been reserved to institutions. Other top players in the tokenized private credit industry are MapleSYRUPPact, Mercado Bitcoin, and CentrifugeCFG
Large companies in the private equity industry are getting interested in the tokenized private credit sector. Apollo Global, which has over $641 billion in private credit assets, has already launched the Apollo Diversified Credit Securitize Fund or ACRED in January.
Similarly, companies like VanEck, Franklin Templeton, and BlackRock have all launched tokenized assets. BlackRock’s BUIDL has crossed over $3 billion in assets, while Franklin Templeton’s FOBXX fund has over $706 million in assets.
Private credit industry is growing
The private credit industry is one of the fastest-growing areas in finance. A report by the Alternative Investment Management Association estimated that the market crossed the $3 trillion asset, a figure that is continuing to grow.
The sector has grown mostly in the United States where many companies have turned to private credit specialists for financing. These firms are seeking to diversify their borrowing away from banks.
Subsequently, some of the biggest banks have launched their private credit funds. Goldman Sachs created the Capital Solutions Group, a business that will provide direct lending solutions. Most recently, State Street partnered with Apolo to launch a new private credit solution.
Tokenized private credit is one of the fastest-growing areas in the RWA industry, which collectively holds $23.10 billion in assets. Over 113,350 investors hold RWA assets.
The other top fields in the RWA industry are stablecoins, US Treasuries, commodities, and institutional funds. Tokenized stocks could be the next big thing after Kraken tokenized over 50 stocks in May.
