Tokenized Credit and Debt Markets: RWA Part 2

Frequently Asked Questions

01.What is tokenized credit in the context of real-world assets?

Tokenized credit is the process of converting a debt agreement, such as a private loan, corporate bond, or trade finance contract, into a blockchain-based digital token. The token represents the lender's legal right to receive repayments. Ownership is transferred on-chain while the underlying legal contract remains enforceable off-chain.

02.How does tokenized credit differ from tokenized treasuries?

Tokenized treasuries represent claims on government debt instruments with standardized risk and yield profiles. Tokenized credit covers private and corporate lending, which carries higher credit risk, variable terms, and borrower-specific structures. Credit tokens typically use ERC-721 for unique loans versus ERC-20 for pooled treasury exposure. Credit markets also require more complex legal-to-code bridges and oracle integrations for repayment tracking.

03.What compliance frameworks apply to tokenized credit platforms in 2025?

Tokenized credit platforms operating in the EU must comply with MiCA (Markets in Crypto-Assets Regulation) which became fully applicable in December 2024. If the platform constitutes a financial instrument under MiFID II, additional licensing applies. Platforms must also implement AML obligations under AMLD6 and FATF Recommendation 16 for counterparty data sharing. US-based platforms face SEC scrutiny under the Howey test for whether credit tokens qualify as securities.