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Tradable Tokenizes $1.7 Billion in Private Credit on ZKSync Network Amid Tokenization Race

Fri, 17 Jan 2025, 04:51 am UTC

Tradable Tokenizes $1.7 Billion in Private Credit on ZKSync Network Amid Tokenization Race

Tokenization platform Tradable has made significant strides in the private credit market by tokenizing $1.7 billion worth of assets on the ZKSync network, marking a major milestone in integrating blockchain technology into private credit markets.

According to CoinTelegraph on January 17, Tradable announced the tokenization of over 30 “institution-grade credit positions,” representing high-quality credit assets. The initiative aims to enhance liquidity and accessibility in the private credit market, with Tradable targeting portfolio yields ranging from 8% to 15.5%.

ZKSync and Blockchain Innovation

Tradable operates on ZKSync, an Ethereum-based layer-2 solution designed to improve network performance and user experience. By tokenizing assets on-chain, Tradable seeks to lower traditional investment barriers and attract new investors. The company emphasized its readiness to accelerate the transition of asset management and financial transactions to blockchain technology.

S&P Global highlights tokenization as a solution to long-standing issues in private credit markets, including liquidity shortages, lack of transparency, and inefficiencies. Additionally, PwC suggests that tokenization enables loans to be divided into smaller units, broadening the range of potential borrowers and improving transaction efficiency in the $1.5 trillion private credit market.

Rising Adoption of Tokenized Real-World Assets

The tokenized real-world asset (RWA) market reached approximately $12 billion in 2024, growing over 85% in the past two years. This surge reflects the financial sector’s increasing adoption of digital assets as a core tool.

Tradable faces competition from other key players, such as Securitize, which has tokenized over $1 billion in assets, and Ondo Finance, which has expanded on-chain government bond offerings in the Asia-Pacific region.

Outlook on Financial Digital Transformation

Experts anticipate that the expansion of tokenization will accelerate the digital transformation of finance, offering enhanced transparency, efficiency, and accessibility in markets traditionally hindered by structural inefficiencies. As blockchain technology continues to reshape financial services, Tradable's efforts signify a pivotal step in this evolution.

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Great article. Requesting a follow-up. Excellent analysis.

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Great article. Requesting a follow-up. Excellent analysis.
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