Jun 6
Just how "tradable" is a tokenized loan?
Just how "tradable" is a tokenized loan?
➤ Tradable has tokenized a LatAm middle-market senior secured term loan on ZKsync Era, aiming to improve liquidity for traditionally illiquid private credit assets. ➤ Despite the 'tradable' claim, current tokenized private credit instruments, including Tradable's, face transfer restrictions and limited secondary market activity, offering structured access rather than true liquidity. ➤ The innovation lies in changing the distribution channel for capital to reach underserved credit markets in regions like Latin America, bypassing traditional fundraising cycles, though the long-term impact on intermediation and who controls the infrastructure remains to be seen.