I recently heard an interesting perspective: the tokenization of private credit might be the most promising growth area in the RWA (Real World Assets) space.

Why is that? The traditional private credit market itself suffers from information asymmetry, with many transactions happening over-the-counter, and participants having varying levels of risk awareness. If these assets are moved onto the blockchain, all transaction records and default data become transparent and verifiable, which is a huge benefit for investors. In comparison, tokenized stocks, since the traditional stock market is already highly regulated, offer limited incremental benefits from being on-chain.

Another interesting prediction is that—within a short period—there may be one or two significant on-chain credit default cases. But this might not be a bad thing; instead, it can fully demonstrate the advantages of blockchain in auditing and anti-fraud measures. Every bad debt will be recorded clearly, and this transparency itself serves as market education.

On a macro level, global inflation pressures and debt issues remain unresolved, prompting large institutions to seek new sources of yield. Yield-generating tokenized assets precisely meet this demand—thus, the allocation value of Bitcoin will also rise accordingly. Simply put, this is an opportunity born out of macroeconomic difficulties.