# Private Credit Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Private Credit", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Redemption Wave Meets Credit Withdrawal Wave, US Private Credit Industry Faces 'Run Storm'

US private credit industry faces a liquidity crisis as investor redemptions surge and major banks tighten financing. Cliffwater and Morgan Stanley restricted withdrawals from multi-billion-dollar funds after redemption requests spiked to 14% and 10.9% of assets respectively in Q1, forcing partial payouts to avoid fire sales of illiquid assets. Simultaneously, JPMorgan reduced collateral values for software-sector loans in fund portfolios, curtailing future leverage availability. The squeeze stems from a net asset value (NAV) arbitrage dynamic: while public market software assets plummeted, private credit valuations remained inflated, prompting investors to redeem at above-market prices. This triggered a bank-run-like cycle where remaining investors face diluted values. Apollo plans to boost transparency with monthly NAV reporting. The $1.8 trillion industry, which expanded rapidly during the pandemic using bank leverage, now confronts underlying assets originated at peak valuations. Despite claims of continued software sector growth, pressure mounts as institutions reassess liquidity risks and valuation opacity.

marsbit03/12 02:47

Redemption Wave Meets Credit Withdrawal Wave, US Private Credit Industry Faces 'Run Storm'

marsbit03/12 02:47

Don't Just Focus on Iran, the US Private Credit Crisis is Step by Step Repeating the 'Subprime Crisis'

Amidst geopolitical tensions, a private credit crisis is rapidly unfolding within the US financial system, drawing parallels to the 2008 subprime mortgage crisis. Major asset managers are facing significant stress: BlackRock restricted redemptions from its $26 billion HPS Corporate Lending Fund (HLEND), capping repurchases at 5% despite 9.3% redemption requests to avoid forced asset sales. Similarly, Blackstone’s $82 billion private credit fund (BCRED) saw a record 7.9% in redemption demands, prompting internal capital injections to avoid gating. Blue Owl Capital, whose stock fell below its $10 SPAC IPO price, sold $1.4 billion in loans to manage redemptions, exacerbating liquidity fears. PIMCO issued a stark warning, predicting a "full default cycle" for direct lending due to relaxed underwriting standards, overexposure to the software sector (vulnerable to AI disruption), and insufficient liquidity compensation for investors. The crisis highlights structural vulnerabilities: semi-liquid funds offering quarterly redemptions are backed by long-duration private loans, creating a mismatch. Redemptions force asset sales, driving down valuations and triggering further withdrawals—a vicious cycle reminiscent of 2008. With the private credit market valued at $1.8 trillion, systemic risks from opacity, concentration, and liquidity mismatches are now under severe strain.

比推03/09 05:28

Don't Just Focus on Iran, the US Private Credit Crisis is Step by Step Repeating the 'Subprime Crisis'

比推03/09 05:28

Those Who Hate Bitcoin Are 'Plundering' the World with Private Credit

Author Jeff Park argues that private credit is the latest and most insidious financial innovation designed to conceal risk, ultimately socializing losses onto unsuspecting pensioners and insurance policyholders. Unlike past instruments like junk bonds or structured credit, private credit is structured to be opaque, with slow, smoothed valuations that hide problems until catastrophic, instantaneous write-downs occur (like BlackRock recently writing two loans to zero). The article posits that the 2008 crisis didn't eliminate risk but pushed it into a shadow banking system. The $2 trillion private credit market, now funding major AI projects, creates a perverse cycle: workers' retirement savings are used for automation that may eliminate their jobs. The core criticism is the flawed incentive structure: fund managers collect fees upfront while long lock-ups and a lack of transparency ensure that retirees and ordinary investors bear all the losses when the investments fail, making it a form of "theft of time" where profits are privatized and losses are socialized.

marsbit03/06 09:53

Those Who Hate Bitcoin Are 'Plundering' the World with Private Credit

marsbit03/06 09:53

Institutional Guide: Allocation Vaults, the Highway for Capital Entering DeFi

Asset allocation vaults are emerging as key distribution infrastructure for tokenized assets to access on-chain capital. This guide explains their definition, operation, and what institutional asset managers need to know. Tokenization has evolved through three phases: recording assets on-chain, capitalization (e.g., tokenized treasuries), and structuring products for DeFi integration. Allocation vaults are smart contract-based tools built on lending protocols, where risk managers approve eligible tokenized collateral, set parameters, and allocate stablecoin liquidity. They act as distribution channels, connecting tokenized products to a five-layer stack: asset issuers, tokenization platforms, lending protocols, risk managers, and distribution platforms. When accepted as collateral, tokenized assets enter a leverage cycle where borrowers use them to borrow stablecoins, amplifying demand and generating yield for depositors. A case study of Fasanara’s mF-ONE illustrates how legal structuring, liquidity engineering, and risk management enable private credit tokenization. For asset managers, key considerations include strategic entry paths, regulatory compliance, operational resilience, and accounting treatment. Asset allocation vaults represent a critical inflection point for distributing tokenized assets at scale.

marsbit03/05 00:12

Institutional Guide: Allocation Vaults, the Highway for Capital Entering DeFi

marsbit03/05 00:12

RWA Weekly Report｜Private Credit Surges Nearly 40%; Bipartisan Senate Inclined to Adjust GENIUS Stablecoin Yield Rules (1.7-1.13)

RWA Weekly Report: Private Credit Surges Nearly 40%; Bipartisan Senate Support to Adjust GENIUS Act Stablecoin Yield Rules (Jan 7–13) The on-chain value of Real World Assets (RWA) grew to $20.81 billion, a 6.23% weekly increase, though broader RWA valuations dropped sharply due to statistical adjustments. Private credit saw a 39% surge, reaching $3.2 billion, while U.S. Treasuries and commodities remained core holdings. Stablecoin user addresses increased, though total market cap slightly declined. Key developments include a new U.S. crypto market draft that prohibits interest payments for merely holding stablecoins, though rewards for trading and staking remain allowed. The bipartisan Senate is considering amendments to the GENIUS Act, potentially limiting which institutions can offer yields. South Korea lifted a nine-year ban on corporate crypto investments, allowing firms to allocate up to 5% of net assets to cryptocurrencies. Notable funding rounds included Rain’s $250 million raise and VelaFi’s $20 million Series B. Cathie Wood suggested the U.S. might directly purchase Bitcoin for national reserves. Meanwhile, Coinbase may withdraw support for the CLARITY Act if it restricts stablecoin rewards. Projects like Ondo Finance and MSX (MyStonks) are advancing tokenized assets, with MSX reducing RWA trading fees to enhance user adoption.

marsbit01/13 15:11

RWA Weekly Report｜Private Credit Surges Nearly 40%; Bipartisan Senate Inclined to Adjust GENIUS Stablecoin Yield Rules (1.7-1.13)

marsbit01/13 15:11

RWA Weekly Report｜Private Credit Surges Nearly 40%; Bipartisan Senate Inclined to Adjust GENIUS Stablecoin Yield Rules (1.7-1.13)

RWAS Weekly Report (Jan 7-13): Private Credit Surges Nearly 40%; Bipartisan Senate Support Grows for Adjusting GENIUS Act Stablecoin Yield Rules RWA on-chain value rose to $20.81 billion, a 6.23% weekly increase, though the broader RWA market saw a significant 29.6% drop due to a statistical adjustment. Private credit was the standout performer, surging 39% to $3.2 billion. U.S. Treasuries and commodities remained core holdings. Key developments include a new U.S. Senate draft market structure bill that proposes banning interest payments for merely holding stablecoins, while allowing rewards for activities like staking. The bipartisan GENIUS Act is also being adjusted to potentially restrict which entities can offer yields. South Korea lifted a nine-year ban on corporate crypto investments, and Hong Kong officials emphasized cautious integration of virtual assets. Stablecoin transaction volume hit a record $33 trillion in 2025. Major funding rounds included Rain's $250 million raise and VelaFi's $20 million Series B. Projects like Ondo Finance and MSX (STONKS) are advancing, with the latter reducing its RWA trading fees. Cathie Wood speculated the U.S. government might begin directly purchasing Bitcoin for its national reserve.

Odaily星球日报01/13 15:08

RWA Weekly Report｜Private Credit Surges Nearly 40%; Bipartisan Senate Inclined to Adjust GENIUS Stablecoin Yield Rules (1.7-1.13)

Odaily星球日报01/13 15:08

From the 'Babson Break' to AI and Meme Coins: A Global Bubble Driven by FOMO Is Taking Shape

The article draws a parallel between the 1929 "Babson Break" and current warnings about an AI bubble, suggesting a global FOMO-driven speculative mania is forming across multiple asset classes. It highlights concerns over unsustainable valuations in AI tech companies, where massive data center investments (projected near $1.6 trillion annually by 2030) are fueled by hype around unproven AGI capabilities. Beyond AI, bubbles are identified in gold, government bonds, private credit (dubbed "crap loans"), and particularly meme coins like TRUMP and MELANIA, which saw values plummet over 88%. The author argues speculative frenzy is amplified by social media, creating a global "attention economy" where collective obsession—from AI to pop culture trends—drives synchronized global market movements. While tech giants may withstand the AI investment rush, risky leverage by newer players and opaque financing structures (like SPVs buying Nvidia chips) raise systemic concerns. Experts warn that a collapse in AI or crypto could trigger a global crisis, emphasizing that productive eras historically follow only after speculative excesses are disciplined by regulation.

marsbit12/18 13:38

From the 'Babson Break' to AI and Meme Coins: A Global Bubble Driven by FOMO Is Taking Shape

marsbit12/18 13:38

The On-Chain Evolution of Private Credit: From Ledgers to Investable Products

Private credit is undergoing a significant on-chain evolution, transitioning from a ledger-based operational upgrade to a distributable, investable product. While the total value of tokenized private credit has surged to around $24 billion, only 12% of the $19.3 billion in active loans tracked on RWA.xyz are held in transferable tokenized form. The market is split between "representative" tokenization—where blockchain serves as a transparent record-keeping system for off-chain loans—and "distributable" tokenization, where loans are natively issued and held as transferable tokens on-chain. The latter is growing rapidly, offering benefits like enhanced liquidity, faster settlement, and improved transparency. Figure dominates the market with a 73% share but uses blockchain only for record-keeping. In contrast, platforms like Maple are driving the shift toward fully distributable tokenized credit. This shift could standardize and scale private credit distribution by reducing intermediation, enabling programmable compliance, and improving portability—key advancements for an asset class that represents less than 2% of the $1.6 trillion global private credit market.

深潮12/18 02:42

The On-Chain Evolution of Private Credit: From Ledgers to Investable Products

深潮12/18 02:42

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