Despite the current negative sentiment in the crypto market, a report from Centrifuge and Keyrock suggests that tokenized private credit could see significant growth, potentially reaching $17.5 billion in total value locked (TVL). This optimistic scenario relies on increased traditional finance participation and integration with decentralized finance (DeFi). A base case projects a more modest $15 billion in TVL due to gradual adoption, while a bearish case predicts a drop to $12 billion if economic conditions worsen. Centrifuge CEO Bhaji Illuminati emphasizes the potential for asset tokenization, particularly in US Treasury securities, equities, commodities, and private credit. The report identifies that even with adverse factors, there is room for growth in real-world assets (RWAs) with optimistic projections suggesting RWAs could be valued at $50 billion, driven by regulatory support and institutional interest. Overall, the outlook remains cautiously positive, with expectations of ongoing development in the sector.

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