Tokenization of Private Credit
Written by: Stein
Edited by: Block Unicorn
What is private credit?
Private credit refers to debt financing provided by non-bank lending institutions, such as direct loans to mid-sized companies, real estate loans, trade finance, consumer loans, and structured credit. These loans are not issued or traded on public markets. Unlike public bonds, these loans are negotiated bilaterally, recorded privately, and are usually held by the originating fund until maturity.
After 2008, as banks scaled back their operations under new regulatory restrictions (Basel III), the private credit asset class grew rapidly. Investment funds, private equity firms, and specialized financial companies entered the space to fill the lending gap. By 2020, the global private credit market size had grown to approximately $2 trillion. By early 2025, the market size had reached 3 trillion dollars.
TechubNews·02-28 02:08












