Blockchain-based private loans hit $582M, doubling from last year

Blockchain-based lending is regaining momentum this year, with the value of active tokenized private credit now sitting at $582 million — a staggering 128% increase from a year ago.

While still far off from its peak of $1.5 billion in June 2022, according to data from real-world asset loan tracker, the resurgence could signal that loan-seekers are looking for blockchain-based alternatives to traditional financiers amid a recent rise in interest rates.

The current average percentage rate is 9.64% for blockchain-based credit protocols, while financiers have been offering small business bank loan interest rates between 5.75% and 11.91%, according to a Dec. 1 report by NerdWallet….

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