Investing in tokenized private credit means lending to businesses on-chain - usually by buying tokens in a credit pool or fund - and earning the interest borrowers pay. It is the highest-yielding mainstream RWA category, often paying well above Treasuries, because you are taking real lending risk: borrowers can default. The process is similar to any RWA purchase, but the due diligence is more demanding, and many deals are limited to accredited investors. This guide covers how to access it and what to verify before you lend.

What you're actually investing in

Private credit is lending to companies that do not borrow from public bond markets - often small or mid-sized businesses, trade finance, or specialty lenders. Tokenized, this becomes a pool or fund you buy into, and the pool lends to borrowers while passing the interest back to token holders. On-chain this runs through platforms like Centrifuge, Maple, Goldfinch and Figure, plus institutional entrants such as Apollo - a market that, as of 2026, carries well over $10 billion in active tokenized loans and has become the second-largest RWA category after Treasuries. Your return is yield from those loans; your risk is that borrowers fail to repay.

Unlike a tokenized Treasury, there is no government standing behind the debt. The quality of your investment is the quality of the underwriting - how carefully the pool chooses and structures its loans. That is also why the yields are high: as of 2026, tokenized credit pools commonly advertise roughly 8-15% APY, with senior tranches nearer 6-9% and junior pieces reaching double digits, while more conservative institutional products pay closer to 5-7%.

Step 1: Check eligibility and the platform

Many private-credit deals are sold under exemptions limited to accredited investors, so confirm you qualify and that the platform is regulated. Evaluate the platform on its underwriting track record, default history, and transparency - who the borrowers are, how loans are secured, and what happens when one goes bad.

Step 2: Understand the structure

Before investing, read how the pool is structured.

Pay close attention to the distribution waterfall and any tranches: senior tranches get paid first and yield less; junior tranches yield more but absorb losses first. Know which you are buying. Also check whether loans are secured by collateral, how diversified the borrower pool is, and the term - private credit is typically illiquid, with your capital committed for months or years.

Step 3: Verify, fund, and invest

Once you have chosen a deal, the mechanics match any RWA: pass KYC and accreditation checks, fund with a stablecoin or cash, and buy your position. Interest is then distributed on a schedule per the waterfall. The general flow is covered in the general investing steps; private credit just adds the eligibility and underwriting scrutiny on top.

What to check before you lend

Treat it like a lender, not a yield-shopper. Confirm the underwriting standards and historical default rate, whether loans are collateralized, how diversified the pool is, your tranche's position in the waterfall, and the lock-up. Size it as a smaller, higher-risk allocation rather than a core holding, and never let a high advertised yield substitute for understanding the risk.

Read reported default rates in context. The major pools often cite defaults below 1-2%, but those numbers are young and were earned in benign conditions; for comparison, an off-chain private-credit default index sat near 2.7% in early 2026 and was rising. Defaults also cluster - in a downturn several borrowers fail at once, exactly when you most want out. And tokenizing a loan changes none of the recovery: if a borrower defaults, you wait on a real-world workout or collateral sale, not a smart contract. The yield is real, but so is the chance of loss.

Where to go next

• Next: tokenized gold - PAXG vs XAUT.
• The deeper risk view: tokenized private credit yield vs risk.
• The full process: the general investing steps.

Sources: rwa.xyz; U.S. SEC (sec.gov), as of 2026.