Creditor Rights

Definition ∞ Creditor rights are the legal entitlements of individuals or entities who are owed money or assets by another party. These rights typically involve the ability to demand repayment, enforce security interests, or seek remedies in cases of default or insolvency. In the context of digital assets, these rights relate to claims against borrowers or platforms holding crypto collateral. They provide a legal recourse for lenders to recover their assets.
Context ∞ Discussions around creditor rights are particularly relevant in the digital asset space during market downturns, exchange failures, or decentralized finance protocol liquidations. The legal standing of crypto lenders and the enforceability of claims against digital collateral remain areas of evolving legal interpretation. News often reports on court cases and regulatory efforts to clarify how traditional creditor protections apply to novel digital asset arrangements, impacting investor confidence and market stability.