Bullish Puts $100 Million Behind the AI Credit Boom
It seems that two big trends are coming together right now: private credit for AI capex, and the tokenization of real-world assets (RWAs). This week, Bullish, the NYSE-listed institutional crypto platform and parent of the news publication Coindesk, announced that it was lending $100 million to USD.AI. The firm plans to leverage the funds for loans to businesses that build artificial intelligence (AI) and related infrastructure.
Essentially, the AI firms leverage their highly valuable computer chips (GPUs) as a guarantee. Bullish believes that the money involved in this new type of lending is huge, noting that it is actually larger than many older, familiar types of borrowing vehicles.
“Bullish is targeting a capital-intensive sector that has rapidly emerged as one of the largest in private credit, with a scale that eclipses legacy debt markets such as auto loans and home equity lines of credit (HELOCs),” the company said.
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