Big Growth in Blockchain Lending: Token-Based Private Loans Almost $14 Billion

Tokenized Loans Reach $13.88 Billion, Boosting Growth in Real-World Assets

Tokenized loans are changing how private credit works. Instead of traditional loans or debt given by non-bank lenders, these loans are turned into digital tokens on a blockchain. These tokens show who owns the loans and make it easier to trade and manage them online.

According to data from rwa.xyz, a few main companies lead this market. Figure is the biggest, with $12.78 billion in loans, making up about 92% of the whole sector. Other important companies are Tradable ($4.72 billion), Maple Finance ($3.38 billion), and TrueFi ($1.72 billion).

There are also smaller players like Centrifuge ($594 million), PACT ($1.08 billion), and Curve Finance ($261 million), plus newer ones like Goldfinch ($170 million) and Creditx ($46 million).

These companies use different blockchains to run their platforms. For example, Tradable uses Zksync Era, TrueFi runs on Ethereum, and PACT uses Aptos. Altogether, loans worth almost $25 billion have been created, and $13.88 billion of those loans are currently active.

Tokenizing loans helps fix some problems with traditional private credit. By breaking loans into smaller digital pieces, more people—including everyday investors—can buy parts of these loans. It also makes it easier to buy and sell loans, which used to be hard to do.

Smart contracts, which are automatic programs on the blockchain, help with loan payments and reduce paperwork and costs. Plus, all data is transparent and available on the blockchain, so it’s easy to see how loans are doing.

The market is growing fast, adding hundreds of millions of dollars in new loans every month. But right now, tokenized loans are still less than 1% of the whole $1.6 trillion private credit market, which means there’s a lot of room to grow.