Can tokenized private credit stress crypto projects? Recent bankruptcies raise fears of insolvent lending vaults

Private credit has caused concerns in traditional finance, with calls for more oversight. In crypto, tokenized private credit is just making forays as a lending collateral and the basis for stablecoins. There are concerns this type of collateral can spread risk into DeFi protocols. source: https://www.cryptopolitan.com/can-tokenized-private-credit-stress-crypto-projects-recent-bankruptcies-raise-fears-of-insolvent-lending-vaults/