🌎 Tokenized Private Credit Market Surges to $13.3 Billion AUM

“`html

The tokenized private credit market is quietly emerging as one of the fastest-growing sectors in real-world assets (RWA), with over $13.3 billion in assets under management. Traditionally dominated by institutions, private credit is now moving on-chain, driven by platforms such as Figure and Tradable, and supported by major players like Apollo, BlackRock, and Franklin Templeton. As asset managers work to bring historically illiquid debt markets onto blockchain technology, tokenization is transforming how credit is accessed, managed, and traded—opening the door for retail and institutional investors alike to enter the $3 trillion private credit market.

Figure and Tradable: Leading the Charge

Figure, a company backed by Morgan Creek Capital, Apollo, and Ribbit Capital, is a major player in the tokenized private credit space with over $12 billion in assets. Figure also operates a marketplace for Home Equity Line of Credit (HELOC), enabling clients to borrow against their homes.

Tradable, the second-largest participant in the tokenized private credit industry, manages $1.8 billion in on-chain assets. Supported by Parafi, Matter Labs, and Victory Park Capital, Tradable specializes in helping asset managers tokenize their assets. Additionally, Tradable facilitates individual participation in the private credit industry, which has historically been exclusive to institutional investors.

Other notable contributors in the tokenized private credit ecosystem include Maple (SYRUP), Pact, Mercado Bitcoin, and Centrifuge (CFG).

Institutional Backing of Tokenized Private Credit

Large companies in the private equity and asset management sectors are increasingly showing interest in tokenized private credit. Apollo Global, which oversees more than $641 billion in private credit assets, launched the Apollo Diversified Credit Securitize Fund (ACRED) earlier this year. Similarly, major firms like VanEck, Franklin Templeton, and BlackRock have introduced their own tokenized products.

BlackRock’s BUIDL fund has surpassed $3 billion in assets, while Franklin Templeton’s FOBXX fund now holds over $706 million. These developments highlight the growing institutional adoption of tokenized private credit.

Growth of the Private Credit Industry

The private credit industry is one of the fastest-expanding areas in finance. According to a report by the Alternative Investment Management Association, the sector has exceeded $3 trillion in assets, with strong growth momentum. This trend is particularly evident in the United States, where companies are seeking alternative financing options beyond traditional bank loans.

Recognizing this shift, major banks are entering the private credit market. For instance, Goldman Sachs launched the Capital Solutions Group to provide direct lending solutions, while State Street teamed up with Apollo to introduce a new private credit offering.

Tokenized Private Credit in the RWA Landscape

Tokenized private credit is a key driver within the broader RWA industry, which collectively holds $23.10 billion in assets and serves over 113,350 investors. Other prominent segments in the RWA space include stablecoins, U.S. Treasuries, commodities, and institutional funds.

Looking ahead, tokenized stocks could emerge as the next major trend in the market. For instance, Kraken recently tokenized over 50 stocks, signaling potential growth in this area.