Bridging Trad-Fi and Blockchain

Over the past year and a half, the world’s largest financial institutions have prioritized building the connective tissue linking traditional finance (trad-fi) to blockchain technology. Unlike the hype cycles of 2017 or 2021, which witnessed significant market volatility, current trends are evolving quietly through avenues such as tokenization pilots, compliance frameworks, custody solutions, and large-scale capital onboarding.

By Q2 2025, a survey conducted by the World Economic Forum (WEF) indicated that over 85% of global banks had either launched or were actively testing tokenized asset infrastructures. Institutions like JPMorgan’s Onyx, HSBC’s Orion, and Citi’s tokenization initiatives serve as indicators of this industry-wide shift. Recently, the total market cap of tokenized treasuries, bonds, and private debt surpassed $25 billion—an increase from $3 billion just a couple of years ago.

Nearly half of these tokenized assets are now found on public or hybrid blockchains, with private credit driving the bulk of expansion. Unlike today’s volatile crypto lending platforms, tokenized private credit is founded on established loan structures backed by tangible collateral.

Today, private credit accounts for roughly $14 billion of the total market, demonstrating that tokenization represents a real evolution rather than a theoretical ideal. The groundwork for a new layer of global finance appears to be solidifying daily.

Fostering Inclusive Financial Opportunities

In response to this transformation, products like VALR’s USD Private Credit Token (USDPC) signify a turning point not only for crypto yield offerings but also for market accessibility. Historically, private credit funds provided 8–10% returns but were often restricted by high minimum investments and complex documentation.

With the introduction of USDPC, VALR collaborates with Canadian firm Garrington Capital to allow users access to a diversified pool of U.S.-based private loans. Investors can engage with the product in small USD denominations while benefiting from an attractive yield.

For retail investors across Europe, Southeast Asia, Latin America, and underserved areas, this product presents a compelling opportunity to earn in dollars and access institutional-grade credit through a globally recognized exchange trusted by users in over 100 countries.

The loans supporting USDPC include commercial receivables, inventory-backed lines of credit, and equipment loans, with Garrington boasting a successful track record over 15 years without a single negative quarter. Redemptions are managed through VALR’s OTC desk with flexible timelines ranging from 7 to 30 days based on liquidity. The token will soon feature in VALR Invest, the platform’s suite of wealth-building tools, and there are no direct management fees for users—only a spread incorporated into trading prices and a performance incentive for the fund manager.

Looking Ahead

Ultimately, USDPC exemplifies the convergence of crypto and traditional finance, illustrating that tokenization is more than a mere experiment—it is a pathway for distribution. By granting access to real-world yield products, VALR positions itself as a forward-thinking leader, promoting the tokenization of credit and the decentralization of financial yields for a truly international audience.