$5B On-Chain Credit: What's Actually Working and What's Still Missing

On-chain private credit has crossed $5 billion across more than 2,000 assets. The borrower side has matured significantly — institutional counterparties like FalconX are accessing credit on-chain with clear terms, legal structures that hold up to institutional scrutiny, and professional underwriters applying real credit discipline. But the liquidity side remains the visible gap. Tokenization improves transferability; it does not automatically create an active secondary market. Craig Burchell and Matteo Pandolfi walk through the current landscape: the different flavors of on-chain credit from stablecoin yield strategies (USDE, USDS, Syrup USDC) to tokenized TradFi private credit (JTRY, Apollo ACRED, Fasanara, Maple), how FalconX is already using on-chain channels for its tokenized loan book, and what the specific stablecoin repo and RWA deleveraging use cases look like in practice. Craig explains the 'HiFi' framework — why a robust on-chain repo market does not require everything to be fully programmatic — and Matteo maps the composability advantage: using an on-chain credit facility as collateral in a Morpho vault is a proof of concept that goes well beyond yield. This clip is from a longer conversation on bringing the repo market on-chain. Full episode here: https://youtube.com/live/E_X1rmunes4  Bits + Bips: The Interview drops every Thursday — subscribe to catch it. Heads up!  If you haven’t yet, be sure to subscribe to Bits + Bips, since the show will migrate there in a few weeks. Follow us on Apple Podcasts, YouTube, Spotify, X, Unchained and wherever you get your podcasts.