Private credit is emerging as a leading asset class in the tokenization space, currently valued at approximately $12.9 billion onchain, far surpassing other asset classes like tokenized T-bills and equities. The private credit market is estimated to be around $2 trillion globally, with the potential to grow to $3 trillion by 2028. Challenges in traditional private credit include limited access for non-accredited investors, illiquidity, and a lack of pricing transparency. Blockchain technology aims to address these issues by providing enhanced liquidity and real-time verification. Various decentralized finance (DeFi) platforms are innovating in this space. For example, Figure tokenizes private credit assets on a specialized blockchain, focusing primarily on Home Equity Lines of Credit (HELOC). Other platforms, like Tradable and Maple, are also making strides in the tokenized private credit sector, offering opportunities that traditional markets do not, although many still face regulatory restrictions that limit retail investor access. Despite these hurdles, onchain private credit is expected to grow significantly, with estimates of market value reaching $15-17.5 billion by 2026.

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