Private Credit Tokenization Surpasses $12.9 Billion in Onchain Assets

BlackRock CEO Larry Fink stated in a recent investor letter that all traditional assets can be tokenized, which could revolutionize investing by enabling instant transactions and reinvesting immobilized funds into the economy.

Key points include:

Private credit leads asset tokenization with $12.9 billion onchain, surpassing tokenized T-bills ($6.2 billion), commodities ($1.4 billion), and equities ($484 million).
The global private credit market is valued at approximately $2 trillion and projected to grow to $3 trillion by 2028.
Traditional private credit faces issues of limited access for accredited investors and illiquidity due to lack of public markets.
Blockchain technology can address these challenges, making private credit more accessible and transparent.

DeFi Onchain Credit Overview

Figure dominates DeFi private credit with $9.9 billion in active loans, utilizing the Provenance blockchain.
Tradable has tokenized $1.8 billion in various institutional-grade private credit positions on ZKsync L2 chain.
Maple Finance offers retail access to private credit yields through its pooled model, overseen by pool delegates.
Onchain private credit is still perceived as securities, restricting retail investor participation due to regulatory frameworks.
Keyrock estimates onchain private credit could grow to $15-17.5 billion by 2026.