Bitcoin-backed lending rebounds with institutional risk controls, SVB says

Silicon Valley Bank says bitcoin lending has matured after the 2022 credit collapse, with overcollateralization, bank participation and $67 billion in crypto-backed loans signaling a new institutional phase.

• Total crypto-backed lending has climbed to $67 billion, up 49% year over year.
• Several major U.S. banks now offer bitcoin-backed credit facilities, SVB said.
• Ledn completed the first investment-grade-rated BTC-backed asset-backed security at $188 million.
• The 2022 failures of Celsius, BlockFi and Genesis reshaped lending toward conservative underwriting.
• SVB estimates the consumer BTC-backed loan market at roughly $3 billion, with potential to scale toward $1 trillion.

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