Private Credit

Private credit is financing provided directly to companies or consumers by nonbank institutions such as funds. The market has recently advanced credit tokenization and digital issuance through Stellar and Polygon, while also experiencing outflows, repricing and tighter lending. The collateral value of AI infrastructure has also come under scrutiny. As banks and insurers increase their exposure, U.S. regulators and the Financial Stability Board are focusing on valuation transparency, growing retail participation and contagion risks. The implications for credit supply and financial stability warrant continued attention.