What is collateral?

In this blog post, we will dive into the concept of collateral. What it is, which types of collateral are used today, and what defines good collateral.

Before diving into the concept of collateral, we want to introduce the reader to some of bitcoin's unique properties, to keep in mind while reading the rest of this section.

Bitcoin's unique properties

Bitcoin's unique properties make it the perfect collateral asset. A global market, an asset without counterparty or credit risk, available 24/7, 365 days a year. No other asset can match these properties. 

No counterparty risk

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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.
by
Research
Feb 24th 2021