Credbull, a decentralized private credit platform, has just announced the launch of a new fixed yield credit facility called LiquidStone. This facility will have a capacity of up to $500 million and will be exclusively available on the real-world asset (RWA) focused blockchain Plume Network. The initial phase of this product will offer investors a fixed 30-day 10% annualized yield with daily redemption features on assets and yield. The assets will be capped at $100 million at the start, with plans to increase the maximum capacity to $500 million in the first quarter of 2025, offering a 90-day fixed yield of 15% annualized.
In addition to the attractive yield, both retail and institutional investors will have the opportunity to earn rewards for participating in the Plume ecosystem. The underlying assets for this fund are diversified across on-chain “high quality liquid assets,” collateralized on-chain lending, and high yield trade financing solutions underwritten by loan originators focusing on small and mid-size businesses.
The tokenization of private credit has been gaining traction within the crypto space, with a current market size of $9 billion according to rwa.xyz data. This movement aims to bring traditional financial instruments such as bonds, commodities, and funds onto blockchain platforms for increased efficiency, transparency, and accessibility. Despite this growth, the blockchain-based private credit market is still relatively small compared to the traditional finance market, which the IMF estimates to be worth over $2 trillion.
Credbull, under the leadership of CEO Jason Dehni, is a newer player in this space with a focus on expanding access to high-yield structured products using blockchain technology to reduce costs. The company’s first fund launched on Polygon earlier this year and is regulated in the Bahamas. In August, Credbull raised $5.2 million in a venture capital round led by GnosisVC.
Plume Network, the blockchain platform where Credbull’s new credit facility will be available, is an Ethereum-based layer-2 blockchain specializing in RWA finance. The platform recently secured $10 million in a fundraising round backed by Galaxy and Haun.
Overall, Credbull’s launch of the LiquidStone fixed yield credit facility marks an important milestone in the tokenization of private credit on blockchain platforms. With a focus on high quality liquid assets and attractive yields, this new offering has the potential to attract a wide range of investors looking to participate in the growing world of decentralized finance.
