A Bloomberg crypto analyst says Ethereum (ETH) and two other altcoins are creating unprecedented financial opportunities for emerging markets.
Blockchain analyst Jamie Coutts say on the social media platform
“Public blockchains offer enormous 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 such as Ethereum, Polygon and Solana. Who invests? Demand comes mainly from equatorial regions, especially emerging markets (EM), with minimal participation from developed markets (DM).
Historically, private credit was reserved for accredited investors. But thanks to public blockchains and the rise of stablecoins, regions plagued by inflation and deprived of yields can now take advantage of private USD lending opportunities. While Bitcoin is rightly the leading asset and network for this movement, other blockchains will be invaluable to a global population that is underserved and deliberately excluded from the mainstream economy and its outdated legal protectors.”
Coutts also says the private credit market comes with risks and transparency by issuers is crucial to protect investors.
“Private credit is not without risk. Just last month, [decentralized lending platform] Goldfinch was faced with a downgrade of its fund. But as long as issuers remain transparent and risks are well communicated, retail investors of all backgrounds can access this traditional asset class in a contemporary, inclusive way.”
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