Blockchain Infrastructure for Private Credit: A Deep Dive

Private credit origination and servicing involves complex operations that require accurate representation of loan-level data, borrower covenants, and ongoing servicing obligations.

Institutions evaluating infrastructure for this category are underwriting operational risk as much as they are evaluating blockchain architecture.

Ethereum offers a deep existing ecosystem for private credit and structured-finance tokenization, with extensive support from custodians, tokenization providers, fund administrators, and other institutional infrastructure.

Avalanche combines support for a live institutional private-credit product - Apollo's ACRED - with Avalanche L1s, which give institutions the option to deploy custom Layer 1 infrastructure when greater control over permissions is needed.