The layer 1 blockchain Solana has been used to launch a new private credit lending pool by decentralized finance (DeFi) credit marketplace Credix Finance, the company announced on Wednesday.Credix, which expects the pool could increase to $150 million over the next several months depending on capital demand in the country, said lenders can earn up to 11% annually by investing in insurance-protected private credit to Colombian farmers backed by receivables.
The new service comes as traditional finance and DeFi are becoming more and more entwined, with crypto native enterprises collaborating with legacy financial institutions to transfer traditional instruments to the blockchain, like private credit and bonds, often known as real-world assets (RWAs).According to a Boston Consulting Group analysis, the tokenization of RWAs might upend banking by increasing the efficiency, accessibility, and transparency of capital markets, which by 2030 could represent a $4 trillion to a $16 trillion market.
This year, the demand for RWAs from digital asset investors increased as a result of the rising yields in the traditional loan markets.Additionally, this occurred as a result of people losing faith in cryptocurrency loans following last year’s huge explosions.Through a bankruptcy remote trust and a pledge of the receivables as security, Colombia-based fintech company Clave and its affiliate Liquitech underwrite and originate the loans in Colombian pesos.The underlying private note is settled in USDC stablecoin via the Credix platform.The receivables are insured by the Spanish Export Credit Agency subsidiary CESCE Colombia.
“This groundbreaking initiative not only brings a unique offering to the market but also holds power to make a significant social and economic impact by providing crucial financial support to farmers in Colombia,” Thomas Bohner, chief executive of Credix, said in a statement.
The pool will pay out an annualized yield (APY) of 11% to accredited investors who deposit USDC stablecoin.This is much greater than the 2.6% APY offered to lenders on the DeFi protocol Aave, according to DefiLlama.Solana Foundation, the company responsible for developing Solana, and the creator of the digital asset market, Keyrock, are among the pool’s initial investors.With its tax receivables pool, released earlier this year, rival credit marketplace Maple Finance has created $36 million in loans. Credix’s new service follows in their footsteps.
According to RWA data firm RWA.xyz, the market for blockchain private credit is worth $557 million.