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🔎 RESEARCH: What happens when crypto’s yield premium disappears just as SMEs face a funding drought? After seven Fed rat...
🔎 RESEARCH: What happens when crypto’s yield premium disappears just as SMEs face a funding drought?

After seven Fed rate hikes in 2022, 10-year Treasury yields surpassed low-risk DeFi yields for the first time. By year-end, Treasuries yielded about 3.9%, compared with roughly 2.4% for low-risk DeFi.

The yield incentive for capital to remain onchain had disappeared.

Meanwhile, new EU SME lending fell 12% in 2023. The annual funding gap reached €39B, while unmet financing needs exceeded €211B between 2017 and 2023. By 2024, 7.6% of SMEs were financially constrained.

That overlap created fertile ground for RWA private credit: onchain capital searching for yield and SMEs searching for funding.

Cointelegraph Research x 8lends examines how RWA private credit can connect onchain capital with SME borrowers.

Read the full report:

https://s3.cointelegraph.com/repo...

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