Tokenized Private Credit Loans Reach $16B as APR Dips Below 10%
The tokenized private credit market has surged to nearly $16 billion in active loans as the average APR slipped below 10%. The tokenized private credit sector’s outstanding principal rose 25% over the past quarter, driven by major DeFi platforms such as Maple Finance, Centrifuge, and TrueFi. Increased institutional adoption and competition for yield have fueled the rise, while narrowing risk spreads have led to lower APRs. Despite tighter margins, the expanding market scale underscores robust investor demand and maturing credit infrastructure in decentralized finance.
Bullish
The surge to a $16 billion market value demonstrates robust institutional adoption and growing confidence in tokenized private credit, signaling positive fundamentals for related DeFi platforms. Falling APRs reflect a maturing market with tighter risk spreads, which may compress near-term yields but indicate reduced risk and broader participation. Historically, expanding credit markets have supported governance token price appreciation, suggesting both short-term resilience and longer-term upside for platform tokens.