Blockchain-based lending is regaining momentum this year, with the value of active tokenized private credit now sitting at $582 million — 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 that loan-seekers are looking for blockchain-based alternatives to traditional financiers amid a recent rise in interest rates.

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.

The loans being taken out aren’t 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.

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.

Brazilian bank Divibank is another financial institution participating in the market.

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.

Goldfinch and Maple are the second and third largest blockchain credit protocols, with $143 million and $103 million in active loans, respectively.

United States dollar-pegged stablecoins Tether (USDT), USD Coin (USDC) and Dai (DAI) are three of the main cryptocurren

Go to Source to See Full Article
Author: Brayden Lindrea

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details