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The Future of DeFi: Yield-Bearing Stablecoins and Verified Real-World Assets

Can blockchain technology make private credit more transparent, accessible and efficient? At TOKEN2049 Singapore, Bassel Sabri, FinTech.TV correspondent, spoke with Pramodya De Alwis, Co-Founder and CEO of Spice Protocol. The conversation explored how tokenized private credit, on-chain verification and yield-bearing stablecoins could bridge traditional financial markets and decentralized finance while addressing longstanding challenges around transparency, liquidity and investor confidence.

De Alwis explained why simply tokenizing private credit assets was not enough to transform the lending industry. Traditional credit markets often operate through fragmented processes, limited reporting and complex verification requirements that make it difficult for investors to independently assess underlying loans. He discussed how Spice Protocol was developing digital credit infrastructure to connect real-world lending activities with blockchain-based verification, allowing investors to gain greater visibility into the financial assets supporting tokenized credit products.

The discussion highlighted Spice Protocol’s work with Australian property developers and private credit lenders, where access to funding remained a significant challenge. De Alwis outlined how blockchain infrastructure could create additional financing channels by connecting traditional borrowers with stablecoin capital and decentralized lending markets. He also shared the company’s plans for a yield-bearing stablecoin designed to provide exposure to private credit returns while potentially improving capital flexibility and access to liquidity.

Technology and verification were central to the conversation. De Alwis introduced Argus, Spice Protocol’s loan management infrastructure, which was designed to support the lending lifecycle from origination and funding to servicing and repayment. He also discussed Vigil, the company’s verification layer, which aimed to connect real-world financial activities with blockchain networks such as Ethereum and Base. Through integration with Accountable and the use of zero-knowledge proofs, these systems could help investors verify important financial information without exposing sensitive borrower or lender data.

Despite the opportunities presented by automation, De Alwis emphasized why human relationships remained essential in private credit. He explained how lending often required negotiation, flexibility and judgment, particularly when borrowers encountered unexpected project delays or changing financial circumstances. Spice Protocol’s approach therefore focused on using technology and artificial intelligence to improve efficiency while preserving the relationships and decision-making processes that underpin responsible lending.

The conversation also examined information inequality within private credit markets and the importance of independently verifiable financial data. De Alwis discussed how continuous verification of loan performance, collateral coverage and loan-to-value ratios could provide investors with clearer insights into underlying credit exposure. He also highlighted regulatory developments in Australia and the U.S., including the GENIUS Act and CLARITY Act, as important considerations for the institutional adoption of tokenized financial products.

Looking ahead, De Alwis shared his perspective on how private credit could become a more significant component of decentralized finance. His insights from TOKEN2049 Singapore highlighted why the next stage of real-world asset tokenization would depend not only on bringing financial products onto blockchain networks, but also on establishing reliable verification, privacy protections and stronger connections between traditional lending and digital capital markets.

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