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Bitcoin lending is entering a new institutional era, according to Silicon Valley Bank
Key takeaways
- Bitcoin BTC$59,913.04 lending is evolving into a more mature, institutionally driven market after the turmoil of 2022, Silicon Valley Bank said in a report last week.
- "Bitcoin has spent much of its existence seeking to prove it belongs," wrote authors Anthony Vassallo, director of crypto at the bank, and research analyst Josh Pherigo.
- The authors said that several major U.S. banks now offer bitcoin-backed credit facilities, while total crypto-backed lending has climbed to $67 billion, up 49% year over year.
Bitcoin BTC$59,913.04 lending is evolving into a more mature, institutionally driven market after the turmoil of 2022, Silicon Valley Bank said in a report last week.
What was once dominated by lightly regulated crypto lenders is increasingly adopting the conventions of traditional finance, including conservative collateral management, greater transparency and more disciplined underwriting, the bank argued.
"Bitcoin has spent much of its existence seeking to prove it belongs," wrote authors Anthony Vassallo, director of crypto at the bank, and research analyst Josh Pherigo. "Some now view it as collateral with instant and global liquidity, fast settlement, fungibility and minimal risk," they added.
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