Why is credit called the "credit creation and value amplifier" of on chain finance? 1) Over 80% of the currency in traditional finance is created through credit (bank lending → deposit expansion). Finance on the cryptocurrency market chain also requires credit mechanisms to amplify liquidity and generate real returns, which is also one of the main ways for the cryptocurrency market to leverage itself. 2) The tokenization of real-world assets such as loans and debts in the future can actually bring a large supply of on chain assets. Previously, here was https://(x.com)/qinbank/status/1979762001686716443? S=46&t=k6rimWSEbo2D2TXolYcM-A has been discussed before, and the DeFi on the chain has slightly stagnated in recent years. The core reason is that there are too few high-quality assets on the chain, and lending and derivatives have always revolved around the big cake, ether, and a few mainstream big coins. The remaining small coins cannot be used as high-quality collateral and underlying assets. The lack of qualified collateral and high-quality underlying assets has led to the stagnation of DeFi's scale. It can be imagined that if there is more high-quality asset supply in the future, the scale of on chain lending and derivatives will expand to a huge volume, far higher than the existing volume. 3) After the credit is put on the chain, it can automate origin, risk management, and achieve efficient matching of capital with emerging market borrowers; 4) Stablecoins and smart contracts make credit "programmable": automatically executing repayment, default handling, and profit distribution, reducing intermediary costs, and improving inclusiveness (small loans, institutional level product democratization); 5) The combination of the two forms a closed loop: stablecoins provide a stable medium → credit generates yield and capital formation → more funds flow into the chain → demand for stablecoins is strengthened → the entire ecosystem is cyclically amplified; 6) Visa and other institutions have clearly stated that stablecoins are shifting from payment tools to "on chain foundations," capable of processing trillions of dollars in loans in the future and driving global credit migration to on chain. The Figure that went public on the US stock market in September last year can be said to be the first large-scale institutional level on chain lending platform, and also the first traditional financial institution to actively embrace the trend of on chain credit. Asset on chain RWA has always been one of the two most promising application directions for encryption (the other being the combination with AI). Previously, here is https://(x.com)/qinbafrank/status/1997561492909298132? We have talked about s=46&t=k6rimWs Ebo2D2TXolYcM-A. Recently, while reading about asset on chain related materials, I noticed the PACTfinance project. It can be said that the leader of native credit on chain in the cryptocurrency field has also emerged. Pact Finance@pactfinance It is a blockchain based decentralized finance (DeFi) project that focuses on tokenizing private credit and real-world assets (RWA), providing on chain loan origins, securitization, and service infrastructure. Mainly targeting licensed lending institutions in emerging markets, helping borrowers connect with global capital while providing investors with transparent and efficient credit opportunities. The initial development of PACT Protocol was led by Pact Labs, with founder Joshua March being a serial entrepreneur with a rich background in technology and finance. He also served as the CEO of Conversocial, a company that developed call center software that was later acquired by Apple. As of February 2026, PACT has issued over $1.9 billion in loans, with active loans exceeding $600 million, and processed thousands of emerging market micro loans. Become the largest RWA issuer on Aptos and the fourth largest tokenized private credit agreement in the industry. Beyond Securitize, Franklin Templeton, and Ondo. The platform also integrates BitGo hosting (serving over 1500 institutional clients) to handle NFT loans and off chain mortgages. PACT focuses on the tokenization of private credit and real-world assets (RWA). This field combines traditional finance (TradFi) and decentralized finance (DeFi), aiming to tokenize off chain credit assets (such as loans and debts) through blockchain, achieving full on chain origin, securitization, and services. But there are significant pain points in this field, which stem from the inefficiency of traditional finance and the challenges of emerging blockchain technology, mainly including: 1) Lack of liquidity and transaction friction: The traditional private credit market has a size of $1.7 trillion, but its liquidity is poor, and investments are often locked in for several years, making it difficult to quickly buy, sell, or exit. This makes it difficult for investors to cope with market changes, and high friction (such as manual KYC/AML, authentication, and transaction structuring) further increases costs and time. 2) Access barriers and fairness issues: Billions of people in emerging markets lack fair credit access, and traditional systems rely on intermediaries such as banks and funds, resulting in high costs and exclusivity. Borrowers find it difficult to connect with global capital, while investors are limited by institutional barriers and cannot participate in small amounts. 3) Regulatory and technological challenges: tokenization involves complex legal frameworks, difficulties in cross-border distribution (such as EU MiCA, US SEC review), the need to deal with ownership transfer, smart contract security, Oracle dependencies (external data sources), and network attack risks These pain points have led to low overall market efficiency, with an on chain RWA adoption rate of only $17 billion (relative to the total market of $1.7 trillion), indicating significant room for improvement. Pact Finance provides solutions to the aforementioned pain points by building an end-to-end on chain credit infrastructure. PACT utilizes Aptos blockchain to achieve sub second level settlement, low-cost transactions, and automation (such as smart contract processing origin, risk management, and repayment), reducing intermediary friction, and improving transparency and real-time visibility. This is particularly applicable to emerging markets, helping licensed lending institutions connect with global capital, providing fair access for borrowers, and bringing high-yield opportunities to investors. Through tokenization, the project reduces liquidity risk, allows for secondary market trading, potentially lowers capital costs, and attracts more institutional funds. By promoting the integration of DeFi and TradFi (such as regulatory compliance, institutional level products), as well as fund level protocols, ve governance, and multi chain integration, Pact can reduce credit risks in emerging markets, enhance financial inclusiveness (benefiting billions of people), and dominate high-yield asset classes. The private credit blockchain, especially the practice of projects like Pact Finance in emerging market credit fields, can indeed be seen as the prelude to the migration of traditional finance (TradFi) to on chain, and by 2026, this migration has accelerated from the "experimental stage" to "production level reality" and "structural transformation". Congratulations on PACT launching Kraken, Mexc, and Gate today.