Private Credit Tokenization Reaches $650 Million Monthly in Transactions
The financial sector is undergoing a significant transformation as blockchain technology enhances the tokenization of private credit. Provenance Blockchain Labs, led by CEO Anthony Moro, is at the forefront of this innovation.
Moro announced at Benzinga's Future of Digital Assets event that about 15% of home equity lines of credit (HELOC) transactions, amounting to $650 million monthly, are now processed on blockchain. This technology streamlines HELOC transactions, saving time and reducing costs by minimizing back-office inefficiencies related to audits and operations.
“Better Than Competitors” with Blockchain
Moro stated that saving 100 basis points in the origination process through blockchain technology positions Provenance Blockchain Labs ahead of competitors. He suggested that this success could extend to mortgage markets, although regulatory challenges in the U.S. may hinder adoption.
Thomas Sullivan from Société Générale discussed their SG Forge subsidiary’s euro-denominated stablecoin on Ethereum, designed to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations, showcasing blockchain's potential when aligned with regulatory frameworks.
Scaling New Heights with Stablecoins
Sullivan described the stablecoin as “permissionless, transferable, and MiCA-compliant,” indicating how Société Générale balances innovation with compliance. Similarly, Citi’s Ioana Niculcea shared updates on Citi Digital Cash, which enables tokenized inter-branch deposits between the U.S. and Singapore, demonstrating Citi’s integration of blockchain into traditional banking.
“Our Citi Digital Cash solution is live and commercial, pushing us toward scale in digital assets,” Niculcea stated.
Despite progress, regulatory constraints persist. Moro emphasized that the SEC has not yet recognized blockchain as a reliable “source of truth” for transfer agents, limiting its broader application. He urged that legislation must evolve alongside technology for the U.S. to lead in this area.