Tokenized Private Credit Could Reach $17.5 Billion in Total Value Locked

Bitcoin's price recently fell below $80,000 amid tariff-driven selloffs. Analysts foresee two scenarios: a potential bounce at $76,500 or a low around $73,500.

A report from Centrifuge and Keyrock discusses tokenized private credit, outlining three potential cases for Total Value Locked (TVL):

The bull case projects $17.5 billion in TVL, driven by traditional finance participation and DeFi integration.
The base case estimates $15 billion in TVL, reflecting continued adoption.
The bear case predicts $12 billion in TVL, contingent on adverse economic conditions affecting crypto sentiment.

Centrifuge CEO Bhaji Illuminati highlights positive trends for real-world assets (RWAs), citing regulatory clarity and four key growth areas:

US Treasury securities
Tokenized equities
Commodities
Private credit

The report anticipates RWAs could grow to $50 billion under favorable conditions, with a conservative estimate of $30 billion even in a base case scenario. Currently, total RWA on-chain stands at $19.6 billion, compared to $227 billion in stablecoin value.