One of the largest private credit deal on record is a two-leg trade. > So, Meta wanted a $27B datacenter off its books. > A blue owl JV borrowed and built it, $27B of A+ paper went to PIMCO and Blackrock maturing 2049 > Meta kept 20% of the equity plus a residual value guarantee underneath. Someone funds it. Someone else ends up owning it. the party closest to the asset keeps skin under the bonds. That's the machine every lender runs. Most of onchain private credit or even defi so to speak has only ever built half of it. Every lender is two sides of one balance sheet. > The funding leg is how you pay for loans. > The asset leg is who ends up owning them. Defi built the funding leg a hundred times: every pool is a warehouse, deposits in, loans out, exit capped by repayment. the asset leg barely exists. ~$20B of tokenized private credit, 61% of tokenized RWAs, mostly wrappers around tradfi's finished output. Well, how does the actual trade look like (ofc on high level): > Sell $100 as senior, keep $5 as junior. > Worst case is the $5, and the $5 earns spread on all $105. > One $10M facility does $40M a year on quarterly turns. And yes, the math is 20×, same series as looping. the difference is what kills you: looping dies on a price. a retained junior dies only on defaults. no margin call, no forced unwind. TradFi has run this machine for decades. It's only now hitting full speed and full scale (more on this insurers and AI soon stuff soon). Tokenization doesn't improve loss-given-default. You need proper structuring and onchain securitization. The onchain structuring part is what we already solved at @strata_markets. Full stack onchain origination is the next unlock we're working on, and the structuing layer is how you unlock distribution and accessibility.