Private loans based on blockchain has reached $582 million

Blockchain-based lending is beginning to gain traction this year. At $582 million, the value of active tokenized private credit represents a staggering 128% increase.

This year, blockchain-based lending is starting to pick up steam. The value of active tokenized private credit is currently $582 million, a startling 128% rise over the same period last year. According to data from real-world asset loan tracker RWA.xyz, the industry is still far from reaching its peak of $1.5 billion in June 2022, but the current increase in interest rates may be prompting borrowers to choose blockchain-based alternatives to traditional financiers. 

According to Dec. 1 research by NerdWallet, lenders have been offering small business bank loan interest rates ranging from 5.75% to 11.91%, while the current average percentage rate for blockchain-based credit procedures is 9.64%.

Based on 1,804 deals, RWA.xyz has tracked $4.5 billion in blockchain-based loans; this implies that the average loan amount is approximately $2.5 million. Asset management company Fasanara Capital, located in the United Kingdom, is one of the most notable loan applicants lately. It obtained a $38.3 million loan from Clearpool at a base annual percentage rate of less than 7%. Another financial player in the area is the Brazilian bank Divibank. 

With $255 million in active loans, Ethereum-based Centrifuge now holds over 43% of the market, up 203% from $84 million at the beginning of 2023. With $143 million in ongoing loans, Goldfinch is the second-largest blockchain credit protocol, followed by Maple with $103 million.