On the Solana blockchain, Credix Finance, a decentralized finance (DeFi) credit marketplace, has introduced a new private credit lending pool. The Solana Foundation is among the investors in this trade receivables lending pool, according to an announcement made by the firm on Wednesday.
Credix has announced that lenders can earn an annual yield of nearly 11% by investing in private credit for Colombian farmers. The credit is backed by receivables and protected by insurance. Credix believes that the pool could grow to $150 million in the coming months due to high capital demand in Colombia.
Exciting News! @Credix_finance introduces a groundbreaking, fully insured USDC receivables pool in collab with Clave, @SolanaFndn, @Keyrocktrading and @circle. A game-changer for accredited investors seeking alternative investment options while supporting financial inclusion.
— CREDIX (@Credix_finance) July 26, 2023
Solana and other DeFi’s Work with Traditional Financial Institutions to Close the Gap Between the Two Economies
As the lines between DeFi and traditional finance continue to blur, crypto-native companies are partnering with established financial institutions to bring traditional financial instruments, such as private credit and bonds, to the blockchain.
These real-world assets (RWAs) are being tokenized, which could revolutionize finance by making capital markets more efficient, transparent, and accessible. By 2030, the market for tokenized RWAs could be worth $4 trillion to $16 trillion, according to a Boston Consulting Group estimate.
There has been a surge in demand for RWAs among digital asset investors this year, as they seek to take advantage of rising yields in traditional lending markets. This increase in interest comes after some participants became disillusioned with crypto lending following last year’s dramatic events.
The loans for this private credit pool are underwritten and originated in Colombian pesos by Colombia-based fintech firm Clave and its affiliate Liquitech.
The receivables are pledged as collateral through a bankruptcy-remote trust. Settlement of the underlying private note is done through the Credix platform using the USDC stablecoin. The receivables are insured by CESCE Colombia, a subsidiary of the Spanish Export Credit Agency.
Accredited investors have the opportunity to deposit USDC stablecoin into the pool and earn an annualized yield (APY) of 11%. This is a big increase above the 2.6% APY that lenders can currently receive on the DeFi protocol Aave, according to DefiLlama.