Data indicates that blockchain credit protocols offer an average APR of 9.65%, compared to an average personal loan interest rate of 11.5%.<\/p>\n\n\n\n
Blockchain-based lending has experienced a significant resurgence in 2023, with the total value of active tokenized private credit reaching a remarkable $582 million. This figure reflects a staggering 128% increase from the previous year.<\/p>\n\n\n\n
Although this amount is still below the peak of $1.5 billion witnessed in June 2022, the resurgence suggests that borrowers are increasingly turning to blockchain-based alternatives in response to rising interest rates, according to data from real-world asset loan tracker RWA.xyz.<\/p>\n\n\n\n
Currently, the average percentage rate (APR) for blockchain-based credit protocols stands at 9.64%. In contrast, traditional financiers have been offering interest rates for small business bank loans ranging between 5.75% and 11.91%, as reported by NerdWallet on December 1.<\/p>\n\n\n\n
The loans secured through blockchain credit protocols are substantial in size. RWA.xyz has recorded $4.5 billion in blockchain-based loans across 1,804 transactions, resulting in an average loan size of approximately $2.5 million.<\/p>\n\n\n\n
One notable borrower in recent times is the United Kingdom-based asset management firm Fasanara Capital, which obtained a $38.3 million loan from Clearpool at a sub-7% base annual percentage yield (APY).<\/p>\n\n\n\n
Another participant in this market is the Brazilian bank Divibank.<\/strong><\/p>\n\n\n\n Ethereum-based Centrifuge holds a dominant position in the current active loans market, accounting for over 43% with a total of $255 million. This represents a remarkable 203% increase from its starting value of $84 million in early 2023.<\/p>\n\n\n\n Following Centrifuge, Goldfinch and Maple rank as the second and third largest blockchain credit protocols, with $143 million and $103 million in active loans, respectively.<\/p>\n\n\n\n The primary cryptocurrencies used to facilitate these loans are United States dollar-pegged stablecoins, including Tether (USDT), USD Coin (USDC), and Dai (DAI).<\/p>\n\n\n\n The largest blockchain-based loan-seekers primarily come from the consumer sector ($197.7 million) and the automotive industry ($186.8 million). Other sectors include fintech, real estate, carbon credit, and cryptocurrency trading.<\/p>\n\n\n\n Despite the recent growth, the $506 million active loan market remains relatively small, accounting for only about 0.3% of the $1.6 trillion traditional private credit market.<\/p>\n\n\n\n It is important to note that obtaining loans from blockchain-based protocols carries inherent risks, including considerations related to insolvency, collateralization, smart contracts, and other security factors that borrowers should thoroughly evaluate before borrowing.<\/p>","protected":false},"excerpt":{"rendered":" Data indicates that blockchain credit protocols offer an average APR of 9.65%, compared to an average personal loan interest rate of 11.5%.<\/p>","protected":false},"author":1,"featured_media":3788,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[44,32,29],"class_list":["post-3787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain","tag-crypto","tag-web3"],"_links":{"self":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/3787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/comments?post=3787"}],"version-history":[{"count":1,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/3787\/revisions"}],"predecessor-version":[{"id":3789,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/3787\/revisions\/3789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media\/3788"}],"wp:attachment":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media?parent=3787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/categories?post=3787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/tags?post=3787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}