Qiro Private Credit Marketplace Testnet

Hi everyone! We are thrilled to announce the Testnet launch of Qiro Marketplace: Tokenized private credit. It’s live on Plume network Devnet at https://testnet.qiro.fi. It’s the first use-case leveraging Qiro’s RWA credit underwriting infrastructure.

Real-World Assets (RWAs) is one of the fastest growing sector in DeFi. By tokenizing assets like Private Credit, T-bills, stocks, bonds etc, RWAs enable investors to access and diversify their portfolios with assets that are traditionally less accessible.

Why Private Credit?

Private Credit is a huge opportunity with more than $11.87B already tokenised on-chain. With the attractive return profile, it has the potential to become the leading RWA category on-chain. Qiro is positioned at the forefront to leverage this, offering unparalleled risk management and high-yield opportunities for stablecoin investors.

Previous attempts to tokenize private credit has faced a critical issue: adverse selection. This has led to credit defaults (~124M$) stemming from opaque credit underwriting. Qiro is building to the enterprise grade credit underwriting infra to solve that, and we have launched our first use-case to validate our thesis.

Qiro Tokenized Private Credit Marketplace

Qiro enables stablecoin investors to access institutional-grade yields from emerging market asset originators. By connecting DeFi investors directly to professionally sourced credit opportunities, Qiro democratizes access to yield sources that were once exclusive to large financial institutions.

Qiro can facilitate private credit transactions with sophisticated structuring, offering flexible repayment options such as bullet and amortization schedules, along with risk-adjusted tranching (senior, junior) to optimize investor returns.

Who are the stakeholders?

1. Stablecoin Investors: On-chain investors looking for fixed yield opportunities.

2. Asset Originators: Fintech originators looking for debt financing.

3. Credit Underwriters: Risk experts responsible for credit risk evaluation.

Why lend on Qiro?
Private credit pools on Qiro Marketplace brings attractive fixed yield opportunities for on-chain investors which is stable, backed by real world cashflows and completely unrelated to crypto volatility. We aim to enable 10-15% APY for stablecoin investors sourced from institutional grade private credit.

Why borrow on Qiro ?
Fintech originators especially from emerging markets despite being high quality operators, struggle while raising debt capital because TradFi debt markets are plagued with inefficient process and lot of rent seeking intermediaries resulting in high cost of capital.

Qiro changes that by enabling these originators to raise capital at lower cost and faster access from global investors leveraging stablecoins and DeFi rails.

How does it work?

1. Tokenization: Asset Originators can tokenise their assets (loan portfolio) and mint NFTs

2. Risk Evaluation: Network of underwriters evaluate the originator & underlying assets and publish their decision with risk metrics.

3. Pool Launch: Lending pool is launched if the evaluation result is positive

4. Investment: Investor put stablecoins in different tranches and get Tranche Tokens

   1. Underwriters invest in the junior tranche to back their decision

   2. if junior is filled, Senior tranche is opened for investors on marketplace.

5. Borrow: Once lending pool is completely filled, originators can borrow the capital.

6. Repayment: Based on predefined repayment schedule, the originators pay back the principal + interest.

7. Redemption: Investors can redeem their tranche tokens to get principal + interest back.

Key Features

• High Yields: Qiro enables attractive, risk-adjusted returns for stablecoin investors backed by institutional grade private credit.

• Distributed Underwriting: Qiro underwriting is done by network which comprises independent nodes operated by credit experts who assess risks and underwrite loans in a distributed manner. This reduces bias, enhance transparency in risk evaluation process.

• Tranching: Every lending pool on Qiro marketplace will have two tranches (Senior and Junior) enabling different risk/reward based investment options for the investors. Read more on Tranching here.

• Transparent Reporting: Qiro offers comprehensive reporting tools that allow investors to track the performance of their investments in real-time. This includes detailed insights into the health of the lending pools, credit risk assessments.

Looking ahead

We are planning to go live on Mainnet in by Q2 2025. Stablecoin investors, asset originators and credit underwriters interested in partnering with Qiro, please fill your details here: https://tally.so/r/mOPjJp

At Qiro, we are always on the lookout for talented individuals to join our team. If you are interested in exploring career opportunities with us, please visit our Careers page or reach out to us at @Qiro_Finance on twitter.

To stay updated with upcoming news on the product launch, please connect with us here on Twitter & Telegram & Discord.