{"id":26768,"date":"2023-12-18T04:42:11","date_gmt":"2023-12-18T04:42:11","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/blockchain-based-private-loans-hit-582m-doubling-from-last-year\/"},"modified":"2023-12-18T04:42:14","modified_gmt":"2023-12-18T04:42:14","slug":"blockchain-based-private-loans-hit-582m-doubling-from-last-year","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/blockchain-based-private-loans-hit-582m-doubling-from-last-year\/","title":{"rendered":"Blockchain-based private loans hit $582M, doubling from last year"},"content":{"rendered":"
\n

Blockchain-based lending is regaining momentum this year, with the value of active tokenized private credit now sitting at $582 million \u2014 a staggering 128% increase from a year ago. <\/p>\n

While still far off from its peak of $1.5 billion in June 2022, according to data from real-world asset loan tracker RWA.xyz, the resurgence could signal that loan-seekers are looking for blockchain-based alternatives to traditional financiers amid a recent rise in interest rates.<\/p>\n

The current average percentage rate is 9.64% for blockchain-based credit protocols, while financiers have been offering small business bank loan interest rates between 5.75% and 11.91%, according to a Dec. 1 report by NerdWallet. <\/p>\n

The loans being taken out aren\u2019t small either. RWA.xyz has tracked $4.5 billion in blockchain-based loans across 1,804 deals, which means the average loan comes out at about $2.5 million.<\/p>\n

One of the most noteworthy loan-seekers of late is United Kingdom-based asset management firm Fasanara Capital, which took out a $38.3 million loan from Clearpool at a sub-7% base APY. <\/p>\n

Brazilian bank Divibank is another financial institution participating in the market.<\/p>\n

Active loans market from blockchain-based protocols since October 2020. Source: RWA.xyz<\/em><\/figcaption><\/figure>\n

Ethereum-based Centrifuge owns over 43% of the current active loans market with $255 million, up 203% from $84 million at the start of 2023.<\/p>\n

Goldfinch and Maple are the second and third largest blockchain credit protocols, with $143 million and $103 million in active loans, respectively.<\/p>\n

United States dollar-pegged stablecoins Tether (USDT), USD Coin (USDC) and Dai (DAI) are three of the main cryptocurrencies used to facilitate these loans. <\/p>\n

Related: <\/em><\/strong>Making crypto lending mainstream: How this platform breaks DeFi barriers<\/em><\/strong><\/p>\n

The largest blockchain-based loan-seekers come from the consumer ($197.7 million) and automotive ($186.8 million) sectors, followed by fintech, real estate, carbon credit and cryptocurrency trading, the data shows.<\/p>\n

Active loans market by sector from blockchain-based protocols. Source: RWA.xyz<\/em><\/figcaption><\/figure>\n

Despite the recent rise, the $506 million active loan market is about 0.3% the size of the $1.6 trillion traditional private credit market.<\/p>\n

Obtaining loans from blockchain-based protocols does, however, come with risks. Loan-seekers should weigh insolvency, collateralization, smart contracts and other security risks before borrowing.<\/p>\n

Magazine: <\/em><\/strong>Home loans using crypto as collateral: Do the risks outweigh the reward?<\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Blockchain-based lending is regaining momentum this year, with the value of active tokenized private credit now sitting at $582 million \u2014 a staggering 128% increase from a year ago. While still far off from its peak of $1.5 billion in June 2022, according to data from real-world asset loan tracker RWA.xyz, the resurgence could signal […]<\/p>\n","protected":false},"author":1,"featured_media":26769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-26768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"\nBlockchain-based private loans hit $582M, doubling from last year | NFT & Crypto News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nftandcrypto-news.com\/crypto\/blockchain-based-private-loans-hit-582m-doubling-from-last-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blockchain-based private loans hit $582M, doubling from last year | NFT & Crypto News\" \/>\n<meta property=\"og:description\" content=\"Blockchain-based lending is regaining momentum this year, with the value of active tokenized private credit now sitting at $582 million \u2014 a staggering 128% increase from a year ago. 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