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<ul>
 <li>There has been a 55% increase in active private loans since the beginning of the year.</li>
 <li>Enterprises seek protection from the growing interest rates by focusing on blockchains.</li>
</ul>
In spite of the continuing volatility surrounding the crypto market, blockchain-based private loans have seen an unexpected upturn.
There has been a 55% increase in active private loans since the beginning of the year, reaching around $408 million by November 28, according to <a href="https://www.rwa.xyz/" target="_blank" rel="noopener noreferrer nofollow">RWA.xyz</a>, as enterprises seek protection from the growing interest rates by focusing on blockchains.
<h3 class="wp-block-heading" id="h-more-transparent-loan-management">More Transparent Loan Management</h3>
Against the backdrop of a conventional private credit market of $1.6 trillion, this recovery is taking place, although at a slower rate than last year’s high. In spite of digital assets’ rough year, private credit based on the <a href="https://thenewscrypto.com/china-all-set-to-launch-blockchain-based-identity-verification-system/" target="_blank" rel="noopener noreferrer nofollow">blockchain</a> by several platforms is seeing a renaissance, with active loans exceeding $408 million in 2023.
Additionally, these platforms provide borrowers access to funds using smart contracts, utilizing Ethereum and stablecoins. Agost Makszin of Lendary (Asia) Capital is quoted as saying in a Bloomberg article that the increased transparency and liquidation processes on the blockchain have successfully reduced lending risks.
Proponents of blockchain also highlight the benefits; for example, Sidney Powell, co-founder of <a href="https://thenewscrypto.com/sherlock-forecasts-a-4m-loss-from-maple-finance/" target="_blank" rel="noopener noreferrer nofollow">Maple Finance</a>, has proposed using blockchain and smart contracts to handle loans, save costs, and expedite financing in an effort to get an edge over the competition.
This occurs at a time when the opaqueness of conventional private lending is coming under fire, and the blockchain-based alternative is proving to be both faster and more transparent in its loan management. After a remarkable eight-week boom, which propelled <a href="http://bitcoin.org" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> from $26,866 to an astounding $44,543, the cryptocurrency is now facing what might be a correction and is trading at around $41,012.
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Blockchain-Based Private Loans Surges, Reaching $408M in 2023

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