Tokenized Private Credit

Private Credit · Lesson 6.1

Private credit is lending that happens outside public bond markets. A fund or a direct lender makes loans to businesses, holds them and collects interest until they are repaid. Tokenizing private credit means issuing tokens that represent a claim on a loan, a pool of loans or a fund that holds them.

The token carries the loans' economics without changing them. Borrowers still have repayment schedules, the loans keep their terms, and someone still has to assess each borrower's credit before any money is lent.

Wally’s note: now with a token. still a loan.

Tokenizing a loan changes how you hold it. It does not change who owes the money.

Open this lesson in the interactive textbook →