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Bitcoin-collateralized lending is rapidly moving toward the mainstream: expanding from trading finance to real-world needs such as tuition and corporate working capital
According to BlockBeats,October 8, Bitcoin-collateralized lending is gradually expanding from crypto-finance scenarios focused on trading and investment to real-world credit needs such as tuition, living expenses, corporate working capital, and real estate, marking a notable shift in market use cases.SALT Lending and Ledn stated that a growing number of borrowers are choosing to pledge BTC as collateral to obtain liquidity rather than sell their holdings.
Since Ledn was established in 2018, its cumulative loan originations have exceeded 11000000000 USD, and it expects this figure to grow to 1000000000000 USD over the next few years. Its clients include entrepreneurs and institutional investors seeking working capital, as well as individuals borrowing to pay for their children's education, real-estate investments, and short-term living expenses.
This trend indicates that the financial characteristics of BTC are extending from a “tradable asset” to a “collateralizable asset.” Borrowers seek to unlock the value of BTC without selling it, while retaining exposure to potential upside. Meanwhile, institutions such as SALT are advancing fixed-rate, longer-term products, bringing crypto-collateralized loans closer to conventional credit models such as residential mortgages.Coinbase has also recently launched fixed-rate BTC-collateralized loans through Morpho.
Ledn further expects that similar models may expand from BTC to traditional hard assets such as gold in the future, as the boundaries of the collateralized lending market continue to expand.
Original link https://m.theblockbeats.info/flash/370736