Definition ∞ Digital Asset Loans involve borrowing or lending cryptocurrencies, often collateralized by other digital assets, without the need for traditional financial intermediaries. These loans typically operate on decentralized lending protocols or through centralized platforms. They allow users to access liquidity without selling their holdings, or to earn yield by supplying assets.
Context ∞ The market for digital asset loans continues to expand, driven by demand for capital efficiency and yield generation in the crypto space. Regulatory bodies are increasingly examining these lending activities, leading to discussions about consumer protection and systemic risk. Future growth will likely depend on clearer regulatory frameworks and the development of more standardized loan products.
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