A Bloomberg crypto analyst says that Ethereum (ETH) and two other altcoins are creating unprecedented financial opportunities for emerging markets.
Blockchain analyst Jamie Coutts says on the social media platform X that ETH, Polygon (MATIC) and Solana (SOL) are unlocking greater access to the private credit market.
“Public blockchains hold immense potential for empowering global citizens. The $850 billion private credit market is just the beginning. Currently, there are $568 million in active loans issued through credit funds on platforms like Ethereum, Polygon, and Solana. Who’s investing? Demand primarily stems from equatorial regions, specifically emerging markets (EM), with minimal participation from developed markets (DM).
Historically, private credit was reserved for accredited investors. But now, thanks to public blockchains and the rise of stablecoins, regions plagued by inflation and starved of yields can tap into USD private credit opportunities. While Bitcoin is rightly the leading asset and network for this movement, other blockchains will introduce invaluable opportunities to a global populace that has been underserved and deliberately excluded from the mainstream economy and its outdated regulatory protectors.”
Coutts also says that the private credit market does come with risks and that transparency by issuers is vital to protect investors.
“Private credit isn’t risk-free. Just last month, [decentralized lending platform] Goldfinch experienced a write-down in its fund. However, as long as issuers maintain transparency and risks are well-communicated, private investors of all backgrounds can access this traditional asset class in a contemporary, inclusive manner.”
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