Skip to content

Private Credit

Private credit is lending provided to businesses or other borrowers outside traditional publicly traded bond markets. Investors provide capital and receive interest and principal repayments according to the terms of the loans or investment structure.

Why it matters to you

Private credit has become an important area of RWA tokenization because loans and credit portfolios can be represented and administered using blockchain based infrastructure. But attractive yields can come with meaningful credit and liquidity risk. Investors need to understand who the borrowers are, how loans are underwritten, what collateral exists and what happens if borrowers fail to repay.

Learn real world assets properly

Our RWA course. Chapter 1 is free.