According to data from the blockchain credit analytics platform, $5.8 Million in loans are overdue at Centrifuge’s decentralized lending protocol Centrifuge. rwa.xyz.
Centrifuge’s loan dashboard lists the distressed debt as consumer loans, invoice and trade receivables financing.
Centrifuge is a credit marketplace that connects lenders and borrowers. It is led by a decentralized autonomous organisation (DAO) and relies on decentralized finance (DeFi). Asset originators can convert their non-crypto assets like consumer credit, mortgages, or invoices into non-fungible tokens and use them to secure financing from accredited investors. It has become one of the most popular blockchain-based real world asset lending platforms, with approximately $130 million. total value locked It.
Centrifuge confirmed that the distressed debt was confirmed in an email. However, the protocol’s representatives were not present in the discussions between asset originators and investors.
Centrifuge’s unpaid loans stand out from other debt-ridden lending options because the loans originated on the platform should be seperated from crypto market turmoil.
Rival lending platforms Maple and TrueFi incurred bad debt last year due to the fact that mainly digital asset trading firms, market makers and used the protocols for cryptocurrency borrowing without collateral to finance their operations. Multiple borrowers defaulted on loans after the crash of the crypto market in 2022.
Continue reading: The Benefits and Risks of On-Chain credit protocols
The best Distressed lending pool Centrifuge offers capital to 1754 Factory in order to purchase bonds backed with short-term capital advances or microloans for French customers. Fintech app with bling. The deadline for repaying all 16 loans in the pool, which totals $5.1 million, has passed. Some loans are more than 150 days late, according to data. rwa.xyz shows.
1754 informed CoinDesk it was “currently liquidating its assets off-chain” and in negotiations with borrowers to repay. The firm also stated that the lending pool would unwind and investors could redeem “in the future”.
Another poolAlternative Payments, a payments company, uses Alternative Payments to finance invoices and accounts receivables for businesses. There are $650,000 in loans that have not been paid out of $6.4 million. Alternative has yet to respond to CoinDesk’s request by press time.
Centrifuge’s loan dashboard shows that four loans totaling $3.3 million are in default. REIF poolThe, which provides capital for commercial real estate mortgages. REIF Financial Investments is an investment firm that focuses on commercial real-estate acquisitions. It stated in an email that all loans have the option to be extended for an additional 12 month, thus avoiding default. Centrifuge was contacted by the firm to update its dashboard.