Asia's $20T credit market is inaccessible to DeFi, leaving investors without easy access.

Asia's $20T credit market is inaccessible to DeFi, leaving investors without easy access.

Title: Asia's $20T Credit Market: A New Opportunity for DeFi?

The Asia-Pacific (APAC) credit market, valued at approximately $20 trillion, has long been inaccessible to decentralized finance (DeFi) platforms. This gap presents a significant opportunity for DeFi to expand its influence and provide innovative financial solutions to the region. Recent developments in tokenized assets and private credit markets are paving the way for increased integration between traditional finance and DeFi.

Granite Asia, a Singapore-based investment firm, is at the forefront of this integration. The firm has appointed Ming Eng, a former executive from Orion Capital Asia, to oversee its expansion into the private credit market [1]. This move comes as the private credit market in Asia faces challenges in securing decent returns while minimizing risks. The market, now valued at $1.7 trillion, is rapidly growing but lacks the depth of liquidity and data found in more developed markets like the US and Europe.

Ming Eng, the new managing partner for Granite's credit strategy, aims to attract investors and borrowers by offering unique credit structures and expertise. Unlike traditional lenders, Granite will not only provide capital but also identify areas where businesses can expand or improve. This strategy is designed to generate mid-to-high teen returns while avoiding the risks associated with larger deals and leveraged buyouts.

The DeFi sector is also making strides in Asia. Chronicle, an oracle infrastructure provider, has partnered with Grove Protocol to enhance tokenized asset offerings in DeFi [2]. This partnership aims to bridge the gap between DeFi and traditional credit markets by providing institutional-grade yields. The tokenized assets market is seen as a multi-trillion dollar liquidity injection opportunity, with oracles playing a crucial role in providing the necessary context and transparency.

Solana, Polygon, and Avalanche are leading the growth of DeFi in the Asia-Pacific region [3]. These altcoins offer scalability, liquidity, and regional relevance, making them ideal for high-frequency DeFi activity. Solana, for instance, handles up to 65,000 transactions per second, making it an attractive platform for DeFi applications in Southeast Asia. Polygon and Avalanche are also making significant strides in DeFi adoption, with Polygon processing millions of daily transactions and Avalanche enabling real-world asset tokenization.

These developments indicate a growing convergence between traditional finance and DeFi, presenting new opportunities for investors and financial professionals. The integration of tokenized assets and private credit markets could make the $20 trillion Asia-Pacific credit market more accessible to DeFi, potentially revolutionizing the financial landscape in the region.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-08/granite-asia-picks-orion-capital-veteran-to-drive-private-credit
[2] https://www.coindesk.com/markets/2025/08/11/asia-morning-briefing-tokenized-assets-will-eclipse-defi-chronicle-founder-niklas-kunkel-says
[3] https://investinghaven.com/crypto-blockchain/coins/top-3-altcoins-leading-asia-pacific-defi-growth-in-august2025/