The Rise of Tokenized Private Credit
HTX Ventures, the global investment division of crypto exchange HTX, has published its latest research report examining tokenized private credit, a rapidly developing area within the real-world asset (RWA) space. The report, titled "On-Chain “Credit Revolution”: Panorama of Trends, Mechanisms & Representative Platforms of RWA Tokenized Private Credit," provides an in-depth analysis of the evolution of private credit, the benefits and risks associated with tokenization, and identifies key entities driving the creation of a decentralized credit infrastructure.
As of August 2025, tokenized private credit represents an estimated $12–$16 billion in assets, constituting over half of the entire RWA market. This figure surpasses even tokenized U.S. Treasury bills, underscoring a strong market demand for blockchain-native investment products offering higher yields while maintaining real-world value.
Understanding Private Credit and Tokenization's Role
Private credit encompasses non-public lending instruments primarily used by institutions for business and project financing. Globally, private credit has grown into a substantial $2 trillion asset class. However, it is often characterized by illiquidity, a lack of transparency, and limited accessibility for retail investors. Tokenization aims to resolve these issues by digitizing and fractionalizing private credit instruments. This process facilitates more efficient capital formation and broader investor access, all while adhering to existing legal frameworks.
Advantages of Tokenized Private Credit
The tokenized model offers several structural advantages over traditional private credit. Competitive yields are achievable through smart contracts that streamline loan origination, registration, and income distribution. This automation reduces operational expenses and enhances transparency by enabling on-chain tracking of cash flows. Additionally, unlike traditional private credit products which often have lock-up periods ranging from 3 to 7 years, tokenized credit introduces programmable exit strategies, including whitelist-based transfers and the possibility of secondary market trading.
Challenges and Future Outlook
Despite these advancements, liquidity remains a significant challenge. Secondary markets for these assets are still nascent, and real-world events, such as borrower defaults, require off-chain resolution. Nevertheless, the report indicates that as regulated marketplaces and token infrastructure mature, the liquidity premium associated with tokenized private credit is expected to diminish.
Tokenization Pathways and Platform Examples
The report details two primary pathways for tokenization: converting traditional funds into on-chain shares and developing native on-chain credit products through decentralized protocols. The former prioritizes regulatory certainty, while the latter emphasizes composability and real-time settlement. Both approaches are moving towards a common objective: making private credit accessible to a wider range of investors without compromising legal and risk management standards.
A significant portion of the report is dedicated to an in-depth examination of several representative platforms in this space:
- •Figure, a market leader, has facilitated the issuance of over $16 billion in U.S. home equity loans via its proprietary blockchain, Provenance. The platform integrates loan origination, on-chain registration, and institutional distribution, capturing over 40% of the global tokenized private credit volume.
- •Maple Finance was an early pioneer in institutional lending on-chain, providing capital pools for trading firms and investment funds. Despite facing challenges due to borrower defaults in 2022–2023, the platform has since strengthened its risk controls and maintains a notable presence on both Ethereum and Solana.
- •Goldfinch introduced uncollateralized SME lending to the Web3 ecosystem, employing a dual-tranche model with Backers and a Senior Pool. Although affected by defaults in emerging markets, it serves as a key case study for transparent credit design.
- •Centrifuge focuses on structuring RWAs into Special Purpose Vehicles (SPVs) and issuing senior/junior tranched bond tokens. By integrating with protocols like MakerDAO, it enables senior tranches to be used as collateral for stablecoin issuance, thereby connecting traditional credit with DeFi liquidity.
- •Tradable, an emerging platform built on ZKsync Era, collaborates with institutional asset managers to tokenize billions in private credit. Its focus on ZK-powered compliance and scalability positions it as a strong contender in the market.
The Path Forward for Tokenized Private Credit
HTX Ventures' report also outlines the future trajectory for tokenized private credit, highlighting key areas for development: enhancing compliance frameworks, standardizing token formats, improving secondary market liquidity, and deepening the integration between decentralized finance (DeFi) and traditional finance. With global Assets Under Management (AUM) for private credit projected to exceed $3 trillion by 2028, even a small increase in tokenization adoption could unlock hundreds of billions in new on-chain credit assets.
About HTX Ventures
HTX Ventures serves as the global investment arm of HTX, integrating investment, incubation, and research functions to identify promising teams worldwide. With over a decade of experience as an industry pioneer, HTX Ventures excels at recognizing cutting-edge technologies and emerging business models within the blockchain sector. To support the growth of the blockchain ecosystem, the division offers comprehensive assistance to projects, including financing, resources, and strategic guidance.
HTX Ventures currently supports more than 300 projects across various blockchain sectors, with select high-quality initiatives already available for trading on the HTX exchange. As a prominent Fund of Funds (FOF), HTX Ventures invests in 30 leading global funds and collaborates with prominent blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to collectively build the blockchain ecosystem.