Tokenized Private Credit
Tokenized private credit represents loans to businesses - private, non-bank lending - as blockchain tokens, letting investors earn interest income from a loan book on-chain.
Tokenized private credit puts loans on-chain. Private credit is lending to businesses outside the public bond market - the loans that banks and private funds make directly to companies. Tokenizing it lets investors buy exposure to a loan or a pool of loans as tokens, and collect the interest on-chain.
It is one of the biggest real-world asset categories by value, rivaling tokenized Treasuries. Platforms such as Figure, Centrifuge, and Maple have brought billions of dollars of private loans on-chain, from consumer and SME lending to trade finance. Yields are higher than Treasuries - often high single digits to low double digits - because the risk is higher too.
The structure usually works like this: a lender originates loans, places them in a legal vehicle, and issues tokens representing a claim on the repayments. Borrowers pay interest and principal; that cash flows to token holders on a schedule. Because it is an investment in others' lending activity, it is a security token with the usual eligibility and transfer restrictions.
The risks are real and specific to credit. Borrowers can default, and in private credit you cannot sell your way out quickly. The quality of the underlying asset - who the borrowers are, how the loans were underwritten, what happens in a downturn - matters more than the tokenization. Higher yield is compensation for taking default and liquidity risk, not a free lunch.
Judge tokenized private credit the way a lender would: on the borrowers, the collateral, and the track record of whoever made the loans.
Source: rwa.xyz, as of 2026.
Mentioned in
- The State of RWA Tokenization (Live Data)
The state of RWA tokenization - market size, growth, and leading asset classes as of early 2026, and how to read the data and where to track it live.
- RWA TVL by Asset Class
RWA TVL by asset class - how tokenized value splits across private credit, Treasuries, real estate, funds, and commodities as of early 2026, and how to read it.
- Tokenized Funds, Credit & Commodities
Tokenized funds, credit, and commodities explained - the three RWA categories beyond real estate and Treasuries, what each offers, and how their risks differ.
- Tokenized Private Credit: Yield vs Risk
Tokenized private credit yield vs risk - why the high yields exist, where the risk really sits, and how to judge whether a credit deal pays enough for its danger.
- How to Invest in Tokenized Private Credit
How to invest in tokenized private credit - on-chain lending to businesses that pays high yield for real risk. The steps, who can access it, and what to check.
- Real-World Asset Examples (With Live Cases)
Real world asset examples in crypto, with live cases - BlackRock BUIDL, Franklin Templeton, Paxos Gold, RealT and Ondo - and what each token represents.
Educational content, not financial or legal advice.