Onchain credit reaches new all-time high as DeFi lending eclipses $41 billion

The onchain credit market just set a new record. According to a Galaxy Digital report, crypto-collateralized debt reached $73.6 billion in Q3 2025. DeFi lending protocols accounted for 66.9% of that figure, pushing outstanding onchain loans to an all-time high of $41 billion. The growth story in numbers Galaxy Digital attributed the surge to a combination of attractive lending incentives and the introduction of new collateral types on blockchain networks like Plasma, which have broadened the range of assets borrowers can pledge. A separate analysis from Visa and Allium Labs adds more texture. On-chain lending balances peaked near $19 billion in November 2025, while monthly stablecoin borrowing volumes hit $51.7 billion in August 2025. Since 2020, cumulative stablecoin-denominated loans processed through onchain protocols have surpassed $670 billion. The tokenized private credit segment has been growing even faster on a relative basis. Active on-chain private credit loans reached roughly $18.9 billion in early 2026, with cumulative originations climbing to $33.7 billion. The sector’s total value locked grew 210% during 2025. Traditional finance keeps showing up In September 2026, Vi...