{"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":"
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