RWA Tokenization Platform Tradable Bridges $1.7B of Private Credit to ZKsync

Real-world asset (RWA) platform Tradable has tokenized a total of $1.7 billion in private credit on ZKsync, highlighting the increasing demand for institutional-grade assets.

Tradable has tokenized nearly 30 “institutional grade credit positions,” which are essentially bonds that are highly rated for their ability to repay debt, the announcement noted Monday.

According to Tradable’s website, its portfolio opportunities target yields of between 8% and 15.5%.

Tradable enables institutions to tokenize their assets on-chain, potentially opening the door to new investors. The company is counting on the continuing migration of wealth advisory services and financial transactions on-chain.

Tradable’s on-chain technology is built on ZKsync, an Ethereum layer-2 protocol developed by Matter Labs. ZKsync was one of the most anticipated blockchain projects of 2024, promising a vast improvement in Ethereum network performance and user experience.

Tradable is among several tokenization firms competing for a slice of the RWA market. Other major players include Securitize, which has facilitated over $1 billion in tokenized assets. In September, digital asset platform ParaFi Capital used Securitize to tokenize part of its $1.2 billion fund.

Moreover, U.S.-based Treasury tokenization platform Ondo Finance has expanded its offerings to include on-chain treasury products in the Asia-Pacific region.

Elsewhere, tokenization blockchain Mantra recently signed a $1 billion agreement with investment conglomerate Damac Group to enable token-based finance across the Middle East.

The opportunities for tokenization

The tokenization of private credit was hailed by S&P Global as a “new digital frontier” for RWAs by helping address the “inherent challenges” of the private credit market.

The firm pointed to research by Coalition Greenwich showing that the majority of private credit investors are still vexed by a lack of liquidity, transparency, and efficiency in the private credit market. According to S&P Global, tokenization can help break down all three barriers.

This was further corroborated by consulting firm PwC, which said tokenization can make it easier to match buyers and sellers in the roughly $1.5 trillion private credit market.

“When private credit starts utilizing tokenization, lenders can ‘fractionalize’ loans, making them into a variety of sizes, increasing the pool of potential borrowers,” said PwC.

Industry research shows that the total market for tokenized RWA stood at $12 billion as of October 2024, having grown 85% over the past two years. According to on-chain finance platform Centrifuge, this is a “clear signal that institutional finance is actively moving into the digital asset space.”