Private Credit Market Rebounds 55% in 2023
Blockchain-based lending is gaining traction after a challenging year for crypto in 2022. The tokenized private credit market has seen a 55% increase since the beginning of 2023, with the total active blockchain-based loans reaching $408 million as of November 28.
This is due to the increasing number of businesses seeking affordable borrowing costs, as traditional lenders charge double-digit rates.
Blockchain protocols lend at less than 10%, making loan terms and repayments transparent and lowering overhead costs.
The consumer industry has the highest outstanding loan at $197.7 million, followed by Auto, Fintech, and Real Estate at $186.8 mn, $105.2 mn, and $40 mn, respectively. The active loan value in crypto trading is $30.5 mn.
(With inputs from Shikha Singh)
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