Onchain credit reaches new all-time high as DeFi lending eclipses $41 billion
RWA Signal Insight
Private CreditThe onchain credit market reached a record $73.6 billion in crypto-collateralized debt during Q3 2025, with decentralized protocols capturing 66.9% of this volume. According to a Galaxy Digital report, this growth is driven by new collateral types on networks like Plasma and enhanced lending incentives. Simultaneously, the tokenized private credit sector has seen rapid expansion, with active on-chain loans reaching $18.9 billion by early 2026. Data from Visa and Allium Labs highlights that cumulative originations in this segment have climbed to $33.7 billion, marking a 210% increase in total value locked throughout 2025. Visa’s partnership with Credit Coop further validates this trend, processing $2.5 billion in settlement volume with zero defaults. The broader tokenized asset market is now estimated to be worth between $30 billion and $46 billion as of late 2026. This shift signifies a transition from volatile crypto-native collateral to real-world assets and institutional credit instruments. Ultimately, these developments suggest that programmable credit is evolving into a multi-trillion dollar industry.
Key points
- Crypto-collateralized debt hit $73.6 billion in Q3 2025, with $41 billion in outstanding loans.
- Tokenized private credit reached $18.9 billion in active loans with $33.7 billion in originations.
- Visa and Credit Coop partnership processed $2.5 billion in volume with zero defaults.
- Total tokenized asset market value is estimated between $30 billion and $46 billion.
Background
Onchain credit refers to lending and borrowing activities conducted via smart contracts on public or private blockchains. Unlike traditional finance, these protocols use digital assets or tokenized real-world assets as collateral to secure loans, often automating interest payments and liquidations through code. This infrastructure allows for 24/7 global access to liquidity and programmable financial agreements.