Crypto credit refers to lending and borrowing digital assets. These financial arrangements involve collateralization with cryptocurrencies, allowing users to access liquidity without selling their holdings. Decentralized protocols often facilitate such operations, offering loans through smart contracts. Centralized platforms also provide similar services, linking traditional finance with digital asset markets.
Context
The expansion of crypto credit services remains a significant discussion point within the digital asset economy. Regulatory bodies worldwide are examining the implications of these financial products, particularly concerning consumer protection and systemic risk. Future developments will likely involve increased institutional participation and clearer legal frameworks governing digital asset lending.
The bank’s global credit initiative leverages third-party custody to transform major digital assets into financeable balance-sheet collateral, optimizing institutional liquidity management.
Mutuum Finance introduces a dual-market lending primitive, offering both pooled instant liquidity and bespoke peer-to-peer credit, enhancing capital efficiency and user optionality in DeFi.
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