Private Credit Crisis Deepens: Can DeFi Offer a Safer Alternative?

TLDR: Private Credit giant BCRED received $3.7B in Q1 2026 redemptions, nearly triggering a formal gate Average BDCs now trade at a 20% NAV discount with yields of 10–11%, signaling rising credit stress. DeFi risks becoming exit liquidity for distressed private credit products offloaded by Wall Street. Smart contracts can enforce redemption rules transparently, giving [...]

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