Private Credit Rebounds in the Crypto Sector With a 55% Jump in 2023
- Loans via blockchains are reviving from a deep slump last year
- Supporters claim digital ledgers are transparent and efficient
A screen displays an interactive bubble chart for crypto currencies inside a BitBase cryptocurrency exchange in Barcelona, Spain.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
More companies are tapping blockchain-based private credit as they hunt for financing in a world of elevated interest rates, sparking a partial revival in a sector that slumped amid last year’s crypto crisis.
Active private loans via digital ledgers are up 55% since the start of 2023 to about $408 million as of Nov. 28, according to RWA.xyz, a platform that tracks the debt. That’s still lower than a near $1.5 billion peak last June — and a fraction of the booming $1.6 trillion traditional market for private credit.