The institutions are entering the lending market

The growth in the crypto lending market has been extraordinary over the past year, and 2020 has seen billions of dollars from institutions being deployed in the lending market.

The institution-focused company Genesis saw YoY growth of 245% in their outstanding loans. Our estimation shows that over 400,000 BTC could already be in use as collateral in the lending market today.

The lending market for bitcoin is young but rapidly growing. The first companies in this sector launched their offerings only four to five years ago. This has now become a billion-dollar industry and an essential part of the overall bitcoin market.

However, this is not surprising when we see how massive the lending activity in traditional markets is. Collateralized loans are seen everywhere, from mortgages and cash loans to the enormous repo market with overnight lending.

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Banking on Bitcoin - The State of Bitcoin as Collateral

Bitcoin's unique properties make it the perfect collateral asset. This report covers how bitcoin is used as collateral today through exclusive data. We describe the current market across lending, derivatives, and DeFi, including predictions on future adoption.
Feb 24th 2021