Tokenized Credit Boom: Why Are Institutions and Retail Investors Rushing In?

Tokenized Credit Boom: How Is Tokenized Private Credit Exploding This Year?

With over $13.3 billion in assets under management, the tokenized private credit market is quietly becoming one of the real-world asset (RWA) sectors with the quickest rate of growth. Private credit, which was formerly the purview of institutions, is now emerging on-chain thanks to platforms like Figure and Tradable and support from titans like Apollo, BlackRock, and Franklin Templeton.

Tokenization is changing the way credit is accessible, managed, and traded as asset managers compete to move formerly illiquid debt markets onto blockchain rails. The $3 trillion private credit universe is now accessible to institutional and retail investors alike due to this change.

Private Credit Market Surpasses $3 Trillion as Demand Surges in the U.S.

One of the financial sectors that is expanding the fastest is the private credit sector. According to research by the Alternative Investment Management Association, the market has surpassed the $3 trillion asset mark, and this amount is still rising. The United States is where the industry has expanded the most, since many businesses have resorted to private credit experts for funding. These companies are looking to diversify their bank borrowing.

Tokenized Private Credit Surges to $23.1B, Leading RWA Growth

With a total asset value of $23.10 billion, tokenized private credit is one of the RWA industry‘s fastest-growing segments. RWA assets are owned by more than 113,350 investors. Commodities, US Treasuries, institutional funds, and stablecoins are the other leading sectors of the RWA industry. After Kraken tokenized more than 50 equities in May, tokenized stocks might be the next big thing.

For more up-to-date crypto news, you can follow Crypto Data Space.