todayonchain.com

Bitcoin lenders say institutions want crypto credit to look more like TradFi

CoinDesk
Institutional investors are demanding that crypto lenders adopt traditional finance standards like transparency, custody, and accountability to manage risk effectively.

Summary

At Consensus 2026, executives from Two Prime, Ledn, and Lygos Finance noted that institutional borrowers now prioritize predictability and risk management over the experimental nature of decentralized finance. Following the 2022 credit collapses, institutions are moving away from opaque structures and rehypothecation toward standardized contracts and clear custodial practices. The panel emphasized that for crypto credit to scale, lenders must align with traditional financial expectations of accountability and operational simplicity.

(Source:CoinDesk)