Tokenizing TradFi’s $1.7 Trillion Private Credit Empire
Private credit works really simply. Instead of borrowing from a bank or tapping public markets, companies get loans directly from specialized funds. It sounds straightforward, but over the past decade, this corner of finance has quietly ballooned into something enormous. Depending on how you count it, the market now manages somewhere between $1.7 and $3.5 trillion in assets. The range varies based on whether you're including asset-backed lending and other strategies, but either way, the numbers are staggering.
Investors in private credit typically pocket 8–12% or more per year, above what public bonds or leveraged loans offer. In return, they accept more flexible, customized deal structures and commit their capital for the long run. For borrowers, especially mid-market companies that banks have turned away, it's often the only game in town.
Typical Yields for Different Credit Types
But private credit has a dark side that rarely makes the headlines. It's...
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