"On-chain private credit" challenges the traditional market... Alaya Research emphasizes its unique scalability

According to Alea Research’s recent report, the on-chain private credit market is still in its early stages but has demonstrated unique growth potential. The report shows that platforms such as Maple, Figure, Centrifuge, and TrueFi are strengthening their market positions in their own ways. Private credit refers to lending practices conducted through privately negotiated terms rather than the public bond market, with a market size reaching $2 trillion, making it a major player in large institutional markets. However, compared to this traditional market, on-chain private credit remains behind. Despite the gap, on-chain private credit has recently experienced rapid growth through significant achievements. Alea Research emphasizes that Maple’s Syrup USDC and Syrup USDT are widely used as DeFi assets, while Figure’s PRIME has gained attention for its short-term asset-backed lending model based on home equity lines of credit (HELOC). The on-chain private credit market consists of various elements. Maple provides credit to institutional borrowers through fixed-rate overcollateralized loans, while Figure is used to realize the financialization of HELOC pipelines. These lending models each have unique advantages in liquidity, legal recourse, and on-chain application scenarios. According to Alea Research, the core concern when transferring private credit on-chain is whether it is possible to maintain credit discipline while ensuring asset collateralization and financial recoverability. In summary, although the on-chain private credit market is in its early development, it is progressing rapidly and challenging traditional private credit structures through diversified innovative models. In the future, key indicators related to this market are expected to shape a new capital market model by improving investor protection and accessibility.