Crypto Lending

Definition ∞ Crypto lending involves the practice of lending digital assets to borrowers in exchange for interest payments. This can occur through centralized platforms that act as intermediaries or via decentralized finance (DeFi) protocols where smart contracts facilitate peer-to-peer lending arrangements. It provides a mechanism for earning yield on held cryptocurrencies and for accessing capital against digital asset collateral.
Context ∞ The crypto lending sector is frequently discussed in news cycles due to its significant role in DeFi yield generation and its susceptibility to market downturns and platform-specific risks. Regulatory attention and the solvency of major lending entities are critical points of current discussion.

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→Capital Gains Tax

→DeFi Compliance

→Crypto Lending

UK Government Aligns Crypto Loan Tax with Economic Substance for DeFi

Firms must immediately update compliance frameworks to track DeFi and CeFi transactions based on economic substance, mitigating disposal risk.

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→Secure Lending

→Institutional Adoption

→Financial Transparency

Crypto Lending Reaches Record Highs with Stronger Foundations

The crypto lending market achieved new peaks in Q3 2025, driven by a significant shift towards asset-backed and transparent practices, signaling increased maturity.

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→Digital Asset Loans

→Financial Products

→Market Infrastructure

Crypto Lending Reaches New Highs, Exceeding 2021 Peak

Crypto lending activity soared in the third quarter, signaling robust institutional engagement and a maturing market infrastructure.

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→Digital Asset Taxation

→Policy Pivot

→Digital Finance

Japan FSA Proposes Major Crypto Tax Cuts and ETF Approvals

Jurisdictional policy pivots toward capital formation by easing punitive tax on unrealized gains, setting a precedent for institutional market access.

→DeFi Regulation

→UK Jurisdiction

→Regulatory Consultation

FCA Consults Industry on New Rules for Crypto Trading and Staking Activities

Firms must re-engineer operational frameworks to align with the proposed UK Market Abuse Regime for Cryptoassets and associated conduct standards.

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→Digital Assets Integration

→Infrastructure

→Third-Party

JPMorgan Accepts Bitcoin and Ether as Institutional Loan Collateral Globally

The bank’s global credit initiative leverages third-party custody to transform major digital assets into financeable balance-sheet collateral, optimizing institutional liquidity management.