TechFlow reported that as interest rates continue to rise, an increasing number of companies are turning to blockchain-based private credit for financing. According to data from RWA.xyz, a platform tracking debt instruments, active private loans on digital ledgers have grown by 55% since the beginning of 2023, reaching approximately $408 million by November 28.
One of the key advantages of blockchain-based private credit is potentially lower borrowing costs. Although interest rates vary depending on specific deals, some blockchain protocols offer rates below 10%, compared to double-digit rates charged by traditional lenders in the current market environment.
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