Private credit markets have always been exclusive, reserved for large institutions, and out of reach for retail investors.
This exclusivity limits access to funding for businesses that can’t secure traditional loans while shutting investors out of a high-potential market. Tradable is changing that.
Built on ZKsync, Tradable brings private credit on-chain, making it accessible, efficient, and transparent.
By bridging the gap between institutions and retail investors, Tradable has already moved $1.7 billion on-chain, opening new opportunities for businesses, fund managers, and investors alike. Here’s what Tradable is, and why it’s a game-changer for private credit.
What is Tradable?
Tradable is a platform that brings private credit investments onto the blockchain, making them easier to access and manage.
The project was founded in 2022 as a joint venture between Victory Park Capital, a private credit firm with $9 billion in originations, and Spring Labs, a blockchain and data security company.
Victory Park Capital plays a dual role as both the initiator and the financial backer of Tradable, alongside partners like Matter Labs and ParaFi Capital. This ensures close alignment between the platform’s creators and its supporters.
Tradable allows institutions, called originators, to list private credit opportunities securely on-chain. Built on ZKsync Era, the platform tokenises these opportunities into ERC-20 smart contracts.
These contracts include strict compliance requirements, such as AML/KYC checks and investor eligibility rules, ensuring only approved participants can invest. Originators retain full control over what information they share and who can access their deals.
Here’s how Tradable works:
- Deal Creation: Originators list private credit opportunities on the platform, detailing terms, maturity dates, and capital requirements. These deals are tokenised into smart contracts that represent ownership stakes.
- Investment and Funding: Investors review the deals, submit offers, and commit funds through USDC wallets or bank transfers. Once funded, tokens are issued to investors.
- Earnings and Repayments: Investors earn interest throughout the deal’s duration. At maturity, principal repayments are made in USDC or to bank accounts, and the ownership tokens are burned as the deal closes.
To date, Tradable has tokenized $1.7 billion across 27 private credit deals, offering an average annual return of over 10%. The platform plans to add a secondary market, giving investors more flexibility to sell or redeem their positions before maturity.
With support from Victory Park Capital, Spring Labs, Matter Labs, and ParaFi Capital, Tradable is transforming private credit by making it easier to manage and accessible to more investors, all while maintaining strict compliance and transparency.
What is the Private Credit Market?
The private credit market is a type of lending where businesses borrow money directly from private investors or funds instead of going through banks or public markets.
It has been known to be one of the most popular investment options for institutional investors since last year, due to the change of interest rates worldwide.
Source: YouTube
The way it works is that a business needs money, and instead of asking one bank for a loan, it gets funding from multiple private investors. These investors lend the business money, just like a bank loan, and earn interest in return.
This is similar to bonds, where companies borrow money and pay it back with interest. However, private credit deals are different because they are not publicly traded and are often customised for the specific needs of the borrower.
Private credit has historically been difficult to access, with opportunities limited to large institutions or wealthy investors.
Bringing private credit on-chain solves many of these problems. Platforms like Tradable turn these loans into digital tokens that investors can purchase.
These tokens represent a share in the loan, making it easier for more people, including smaller investors, to participate.
Blockchain technology automates the process by handling compliance checks, payments, and ownership tracking, making it faster, more affordable, and more transparent.
Using scalable blockchains like ZKsync ensures the system can efficiently handle large transaction volumes while keeping costs low and transactions secure.
On-chain private credit combines the flexibility and higher returns of private lending with the accessibility of blockchain technology, opening up new opportunities for both investors and businesses.
How is Tradable Useful for Institutions and Investors?
Tradable makes private credit deals easier for both institutions offering loans and investors looking to participate.
By turning these deals into digital tokens on the blockchain, Tradable creates a system that is simpler, faster, and more accessible for everyone involved.
For Institutions (Originators)
Institutions, like companies managing private credit or offering loans, often face challenges in finding investors and handling deals. Tradable gives them tools to manage every step of the process.
- Listing Deals: Institutions can create loan opportunities on Tradable and set clear rules about who can invest. This ensures that only approved investors, who meet legal requirements, can participate.
- Saving Time and Effort: Tradable automates tasks like creating agreements, tracking funds, and managing repayments, making the process less time-consuming.
- Protecting Privacy: Institutions can choose what information to share about their deals. Only trusted investors who are approved can see all the details.
- Reaching More Investors: By turning loans into digital tokens, Tradable allows institutions to access a wider pool of investors, helping them secure funding faster.
For Investors
Investors benefit from Tradable by gaining access to private credit opportunities that were previously limited to large institutions.
- Exploring Opportunities: Investors can browse a list of available loans, see important details like interest rates and repayment schedules, and decide where to invest.
- Easy Investing: Funding deals are simple, with options to use USDC (a digital currency) or regular bank transfers. Investors receive digital tokens representing their share in the loan.
- Tracking Investments: Investors can use Tradable to monitor their earnings, view repayments, and even redeem their investments early if liquidity is available.
Tradable helps institutions and investors connect, creating a fair and efficient system for private credit deals.
How Do I Use It as a Retail Investor?
Tradable makes private credit investing accessible, offering a simple process for retail investors to start earning competitive returns. Here’s how you can get started:
Source: Tradable
1. Join the Waitlist
Currently, registering on Tradable requires joining the waitlist. Visit Tradable and create your account by providing your email, verifying it, and setting up a password. Once the platform confirms your spot, you’ll be given access to create an account and explore opportunities.
2. Complete Verification
After gaining access, you’ll need to verify your identity to meet compliance standards like KYC and other deal-specific requirements. Tradable ensures all investments follow strict compliance rules, such as geographic or accreditation restrictions, safeguarding both investors and originators.
3. Browse and Choose Deals
Once verified, you can view deals listed on the platform. Each deal displays key information, including expected returns, the total size of the deal, and the minimum investment required. Here are some examples:
- Fintech Senior Secured Loan: 15% annual returns, $110M funded (96% filled).
- Legal Receivables Loan: 15.5% annual returns, $57M funded (64% filled).
- Point-of-Sale Financing Loan: 8% returns, $100M funded filled).
- Music Royalties Loan: 11% returns, $100M funded (filled).
4. Invest and Earn
Choose a deal, input your investment amount, and submit your offer. Once approved, your funds are allocated, and you’ll receive tokens representing your share in the loan. Investments start earning returns immediately, with average annual returns of around 10%.
5. Manage Your Portfolio
Tradable provides tools to track your investments, view updates, and redeem funds if liquidity is available. The entire process is streamlined, making it easy for anyone to start investing and managing their portfolio.
By following these simple steps, Tradable makes private credit investing approachable, efficient, and accessible for retail investors.
Is There a Token Yet?
Currently, Tradable does not have a token, and there is no indication of a potential retroactive airdrop.
The platform has been performing well without relying on retail incentives, as its primary focus is on serving traditional and institutional investors.
These users value the platform for its compliance, efficiency, and ability to provide access to high-quality private credit opportunities, making Tradable an attractive investment alternative rather than a token-driven ecosystem.
With that said, this does not mean the possibility of a token launch is entirely off the table. Tradable has strong backers and partners, including Victory Park Capital, ParaFi Capital, and Matter Labs, who could potentially invest further in the project.
A token launch could be a way for these stakeholders to realise returns on their investment, though nothing has been officially disclosed.
For now, the focus remains on building a robust platform for institutional-grade private credit deals, and the absence of a token aligns with this strategy.
While there is no current talk of a token, investors should note that the possibility remains open in the future, depending on the company’s growth and the interests of its partners.
Conclusion
Tradable simplifies private credit by bringing it on-chain, making the process easier for institutions to manage deals and investors to access opportunities.
Institutions can create and manage private credit deals securely, while investors benefit from access to high-return opportunities that were previously out of reach.
With $1.7 billion already tokenised, Tradable is proving that private credit can work without retail incentives or tokens, focusing instead on efficiency and compliance.
Whether you’re seeking funding or looking to invest, Tradable offers a straightforward way to participate in the private credit market while leaving room for future growth.
