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A Bloomberg crypto analyst is super excited about Ethereum (ETH) and two other altcoins, saying they’re creating opportunities for emerging markets!
According to Jamie Coates, a blockchain analyst at social platform X (Twitter), Ethereum (ETH), Polygon (MATIC), and Solana (SOL) are leveling the playing field and giving more people access to the private credit market. Coates believes that public blockchains have the potential to empower people worldwide. These three cryptocurrencies have already facilitated $568 million in active loans through credit funds, and most of the demand is coming from emerging markets in the tropics. Developed markets have been less involved so far.
Ethereum, Polygon
In the past, private credit has only been available to established investors, but things are changing. Public blockchains and the rise of stablecoins have made it possible for regions with already high inflation and yield saturation to tap into the private credit opportunities denominated in US dollars. While Bitcoin is the dominant player in this movement, other blockchains also offer valuable opportunities for people globally. These opportunities were previously excluded by mainstream economics and its old-school regulations.
Coates emphasizes the importance of protecting investors in the private credit market. Transparency from issuers is vital to safeguarding investor interests. Private credit does come with risks, as demonstrated by recent losses suffered by decentralized lending platform Goldfinch. However, as long as issuers prioritize transparency and effectively communicate risks, investors from all backgrounds can access this traditional asset class in a modern and inclusive manner.
