Credbull Launches the First Licensed On-chain Private Credit Fund

Credbull.io
4 min readApr 4, 2024

In the dynamic realm of DeFi, Credbull takes a monumental leap with the launch of the first licensed on-chain private credit fund, setting unprecedented benchmarks for access, inclusivity, transparency, and performance. Leveraging the scalability and efficiency of Polygon PoS, Credbull is set to reshape the landscape of TradFi and DeFi, by providing access to the best-performing asset class of the last two decades, coupled with high-fixed yield opportunities immune to market volatility.

Highlights of Credbull On-Chain Private Credit Fund 1

  • High fixed yields: Competitive structured yields offer stable returns in volatile markets.
  • Flexible lock-ups: Choose lock-up periods to match investment goals.
  • Decentralized governance: Operates with decentralized governance, providing a system of checks and balances.
  • Transparent: Full visibility of all on-chain and off-chain capital deployment
  • Real-world asset access: Access to private credit through established SME asset originators, tapping into high-performing assets.

Credbull’s innovative approach directly addresses several critical challenges afflicting the market today, such as unmanaged volatility in crypto due to the high degree of correlation among assets, the suboptimal monetization of crypto platforms with substantial TVL, and the complexity and opacity inherent in traditional asset management and RWA investments.

The first truly decentralised RWA investment vehicle

Until now RWA investment opportunities in DeFi offer tokenised subscription to a traditional fund or asset that remains off-chain and opaque. The Credbull On-Chain Private Credit Fund 1 is not a tokenised fund. By placing the entire fund on-chain and offering a ‘Claim Token’ for self-custody, Credbull enables decentralised governance and ensures real-time transparency in its strategy, risk management, and performance.

“We are guided by the core principles of DeFi, namely direct access, on-chain deployment, decentralised governance and full transparency.” Jason Dehni, CEO and co-founder at Credbull.

Access to a once-walled garden of opportunity

Private credit is the best performing class in the last 20 years from both an absolute and risk-adjusted basis (Fig 1). By bringing a private credit fund structure on-chain, Credbull is breaking down the barriers that restrict access to private credit previously only available to institutions and High Net Worth lenders. Credbull is set to help usher in the next phase of DeFi growth by facilitating access to the $1.8T private credit market.

Fig 1: Private credit emerging markets is the best performing asset class from both an absolute and risk-adjusted basis

The Credbull On-Chain Private Credit Fund 1

The Credbull On-Chain Private Credit Fund 1 offers no minimum investment, unlike most private credit products with high six-figure minimums. It features two tenure options: a six-month term with a fixed 8% APY and participation in up to 20% carry, and a 12-month term with a robust 10% Fixed Yield and a 30% carry. With an asset allocation capacity exceeding $500 million, the fund channels capital toward established SME Lending Originators, generating substantial yield from a diversified portfolio of over a million creditworthy SME transactions annually, with a historical default rate of less than 2.0%.

Through its Credbull Pro DeFi-as-a-Service infrastructure, the Fund caters to institutional platforms, project/DAO treasuries, asset managers, and accredited lenders, allowing seamless deployment via API to enhance service offerings and provide access to non-correlated high fixed yield opportunities.

“In addition to serving institutional clients, we’re committed to democratizing access to private credit for retail investors,” adds Dehni. “Our roadmap includes the development of a retail-friendly platform, allowing individuals to access private credit, further democratizing access to this high performing asset class.”

To learn more visit Credbull.io.For first mover advantage join the community on Discord and X (Twitter)

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About Polygon Labs:

Polygon Labs develops Ethereum scaling solutions for Polygon protocols. Polygon Labs engages with other ecosystem developers to help make available scalable, affordable, secure and sustainable blockchain infrastructure for Web3. Polygon Labs has initially developed a growing suite of protocols for developers to gain easy access to major scaling solutions, including Layer 2s (zero-knowledge rollups), sidechains, app-specific chains and data availability protocols. Scaling solutions that Polygon Labs initially developed have seen widespread adoption with tens of thousands of decentralized apps, unique addresses exceeding 400 million, 2 million smart contracts created and 3.5 billion total transactions processed since inception. The existing Polygon network is home for some of the biggest Web3 projects, such as Aave, Uniswap, and OpenSea, and well-known enterprises, including Adidas, Stripe and Adobe. Polygon Labs is carbon neutral with the goal of leading Web3 in becoming carbon negative.

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About Credbull

Credbull is at the forefront of merging traditional finance with decentralised technology. Founded by veterans from both realms, Credbull aims to usher in a new era of transparency, access, and accountability in investment. Through innovative solutions and a commitment to democratisation, Credbull is reshaping the landscape of finance for the digital age.

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DISCLAIMER

Investing in the Credbull On-Chain Private Credit Fund 1 involves inherent risks, with past performance not indicative of future results. The Fund, registered in the Bahamas and subject to its regulatory framework, operates on-chain to provide transparency and accessibility to lenders. However, prospective lenders should be aware of the decentralised nature of the Fund, which entails unique risks associated with DeFi, such as smart contract vulnerabilities and regulatory uncertainties. With lock-up periods and minimum investment requirements in place, lenders are encouraged to consult with financial advisors or legal counsel before participating, ensuring alignment with their investment objectives and risk tolerance.

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Credbull.io

Credbull is the first fully integrated and transparent DeFi Credit Platform in SME Real World Assets