Crypto yield space comes of age amid TradFi convergence

Key Points

1. VALR, Africa's largest cryptocurrency exchange, launched the USD Private Credit Token (USDPC), a yield-bearing token targeting annual returns of 8–10%, comparable to traditional private credit funds.

2. By mid-2025, the on-chain real-world asset (RWA) market (excluding stablecoins) grew to over $24 billion, marking it as one of the fastest-growing sectors in crypto.

3. Garrington Capital, managing USDPC's underlying loans, has deployed over $14 billion in asset-backed loans across five sectors, with a historical return of 10.7% over three years.

4. VALR's initiative provides African investors access to regulated, high-yield opportunities, addressing the gap between low local interest rates and risky crypto lending schemes abroad.

5. The convergence of TradFi and crypto is accelerating, with VALR's fully licensed status signaling a ripe environment for innovation in the crypto yield space.