Onchain Private Credit: How Tokenized Lending Works and Its Risks
Private credit is lending that happens outside public bond markets: loans to small businesses, fintech lenders, trade finance, home equity lines and more. Tokenized private credit brings these loans onchain, either by recording the loans themselves on a blockchain or by letting lenders buy tokens that represent a share of a loan pool.
By value it is the largest RWA category on this site, mainly because of Figure’s home equity loans, which are originated directly on the Provenance blockchain.
Two models
Loans recorded onchain. Figure originates home equity lines of credit and records them on Provenance. The loans are real-world credit, and the blockchain is the system of record. These make up most of the category’s value.
Onchain lending pools. Platforms such as Centrifuge, Maple and others raise money from onchain lenders (usually in stablecoins) and lend it to real-world borrowers. Lenders hold pool tokens and receive interest as borrowers repay.
Where the yield comes from
Private credit yields are higher than T-bills because lenders are paid for:
- Credit risk: borrowers can default.
- Liquidity risk: withdrawals are often limited to set windows, and loans can’t be sold quickly.
- Complexity: underwriting, servicing and legal enforcement happen off-chain, in specific jurisdictions.
What to check before lending
- Who underwrites the loans and what their track record is.
- Seniority: senior tranches are repaid before junior ones and take losses last.
- Collateral and recovery: what happens if a borrower stops paying, and in which courts.
- Withdrawal terms: lock-ups, notice periods and queue rules.
- Reporting: how often loan performance is published, and whether it is audited.
The risks are real
Onchain credit is not new, and it has been tested. Several lending pools saw borrowers default in the 2022 crypto downturn and afterwards, and some lenders lost money. Newer products have moved toward over-collateralized loans, institutional borrowers and rated structures, such as tokenized AAA CLO funds like JAAA, but the basic risk of lending remains.
Current figures
The live table ranks tokenized private credit products by value. See the private credit category for every product, chain and issuer.
Largest tokenized private credit right now
See allTokenized Private Credit total: $26.5B as of Oct 5, 2026.
| # | Asset | Issuer | Value | 7D | 30D |
|---|---|---|---|---|---|
| 1 |  Figure HELOCFIGR_HELOC | Figure | $24.4B mc | +5.2% | +6.0% |
| 2 | - | $414M | +11.3% | +47.9% | |
| 3 | - | $338M | +55.7% | +20.1% | |
| 4 |  Tradable NA Rent Financing Platform SSTNPC0000031 | - | $203M mc | 0.0% | 0.0% |
| 5 |  Tradable APAC Diversified Finance Provider SSTNPC0000033 | - | $163M mc | 0.0% | 0.0% |
| 6 |  Tradable Singapore Fintech SSLPC0000023 | - | $115M mc | 0.0% | 0.0% |
| 7 |  Tradable NA Third Party Online Merchant SSTNPC0000015 | - | $106M mc | -0.0% | -0.0% |
| 8 | - | $106M | +0.2% | -1.4% | |
| 9 |  Tradable LatAm Middle-Market Lender SSTLPC0000085 | - | $100M mc | -0.0% | -0.0% |
| 10 |  Tradable NA Post-Settlement Legal Financing ReceivablesPC0000101 | - | $76.7M mc | -0.0% | -0.0% |
| 11 |  Tradable North America PoS Lender SSTNPC0000019 | - | $75.6M mc | 0.0% | 0.0% |
| 12 |  Tradable NA Neobank SSTLPC0000023 | - | $75.0M mc | 0.0% | 0.0% |
| 13 |  Tradable Eu/LatAm PoS Financing SSTLPC0000049 | - | $65.3M mc | 0.0% | 0.0% |
| 14 |  Tradable NA Legal Receivables SSLPC0000081 | - | $57.1M mc | - | - |
| 15 |  Tradable LatAm BNPL SSTNPC0000027 | - | $47.0M mc | - | - |
FAQ
What is tokenized private credit?
Tokenized private credit is lending to businesses or households outside public bond markets, where the loans, or shares in a pool of loans, are represented by tokens on a blockchain.
Why does onchain private credit pay more than treasuries?
Lenders take on credit risk (borrowers may not repay) and liquidity risk (capital is often locked for weeks or months). The higher yield is the compensation for those risks.
Have onchain private credit pools had defaults?
Yes. Several onchain credit pools have suffered borrower defaults and losses for lenders, especially in 2022 and 2023. Default history and recovery terms are among the most important things to check.
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This guide is general information, not investment advice. Check an issuer's own documents before investing.