The funds’ high yield targets are partly a function of its on-chain structure, he explained. Doing everything on a blockchain cuts as much as 150 basis points in fees that would otherwise go to administrative costs. In private credit, small- and mid-sized businesses in need of financing get their money from specialized lenders instead of banks. These deals have grown into a $1.7 trillion market, according to Bloomberg, that rivals the banks and caters to tony investor types who are willing to lock their money for years in exchange for strong returns.