Fabian Dori, the chief investment officer in the Digital Asset Bank Sygnum, said banks offering crypto-supported loans prefer crypto collateral in the form of onchain assets instead of funds exchanged (ETF), and the use of onchain collateral can benefit from debt.
Dori said onchain assets are more liquid, allowing lenders to make margin calls The loans supported by crypto In demand and offer a higher ratios of lender (LTV) to lenders because the lender may liquid the collateral in real-time. Dori told Cointelegraph:
“It’s best to have direct tokens as collateral, because then you can do it 24/7. If you need to make a margin call to an ETF on Friday at midnight, when the market is closed, then it’s more difficult. So, the direct handling of the token is really more interesting from that point.”
Crypto ratios ratios to the total amount of a loan compared to the collateral that supports the loan, such as Bitcoin (Btc), Ethereum (Eth), or any other tokens received by the lender.
A higher LTV ratio means the borrower can access more credit related to their posted crypto collateral, while a lower LTV means they will get a smaller loan for the same collateral.
Crypto-supported loans are still in their childhood, Dori said, but she is confident that the sector continues to grow as cryptoes get a wide adoption.
Financial institutions continue to embrace the loans that are crypto -nesecure as Crypto lenders went public In US stock exchanges, and the financial traditional companies (Tradfi) warmed up the idea of crypto acceptance as a loan collateral.
Related: South Korean crypto lending rates by 20%, leveraged loans forbidden
Crypto debuts lending to Wall Street while Tradfi warms up to crypto lending supported
Figure technology, a crypto supported by crypto, Made its debut on NASDAQ ExchangeA tech dedicated to the US Stock Exchange, on Thursday.
https://www.youtube.com/watch?v=ly-sjGrakrs
Company shares climbed more than 24% during the intraday trading on the first day, and the company currently has a market capitalization of more than $ 6.8 billion, According to In Yahoo Finance.
The financial service company JP Morgan is also considered -alang also offers crypto-supported loans In clients, a development that will occur once in 2026 if the financial giant is advancing the idea.
Magazine: Home loans using crypto as collateral: are the risks beyond reward?
