NEW: Visa is tokenizing assets on Ethereum The largest payments company in the world just announced their tokenization platform. BBVA, the 2nd biggest bank in Spain, with over €750 BILLION in assets, will use it to launch a stablecoin next year. The institutions are here.

Moody's, a leading traditional finance ratings agency, interviewed us about the impact of tokenization on private credit and other real-world assets! ​ Here are the key takeaways: 📓 ​ 1. Traditional private credit is the top risk-adjusted asset class of the last decade, but is generally only available to professional investors. Tokenization can change this, allowing access to this lucrative asset class to accredited and even retail investors. ​ 2. Tokenization can greatly increase the transparency and efficiency of value transfer throughout the lifecycle of a credit fund, including LP subscription and redemption, loan disbursement, interest payments, and collateral liquidation. This is due to the automation that is possible with smart contracts, along with near-instant settlement of tokens. These could also enable liquid trading of LP shares and individual loans, but this is yet to be seen. ​ 3. Adoption of tokenized private credit is higher in emerging markets with less developed financial systems, where there is a greater need for access to credit. Latin America, Africa, and South-east Asia, are the most common recipients of on-chain, RWA lending. ​ 4. All lending contains risk, and tokenized credit is no different. 4% of on-chain loans experienced a missed payment, compared to 1.5% in traditional markets. Yields were not higher to make up for these defaults: 9.6% in tokenized private credit, and 11.8% measured by the Cliffwater Direct Lending Index. This suggests some degree of adverse selection taking place amongst borrowers. One key to further growth is closing this gap by having higher-quality issuers and originators tokenize their assets ​ 5. Tokenized private credit has largely evaded regulatory scrutiny, with issuers tending to operate under Reg D and S exemptions under the US Securities Act. This mirrors its traditional financial counterpart, which tends to have less oversight than public credit, a much larger market. ​ These were just a few of the insights in a wide-ranging interview, so be sure to check out the full report below!