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Why long-term holders are turning to crypto lending platforms

Long-term crypto holders are increasingly using crypto lending platforms to access dollar-like yields and liquidity without selling core holdings. The sector has shifted since 2022 toward overcollateralisation, tiered LTVs, strict no-rehypothecation and broader collateral lists, restoring institutional trust. Outstanding crypto-collateralised loans reached $73.59bn by Q3 2025 and platform revenue is forecast at $12.69bn in 2026, supporting higher platform fees and loan demand. Stablecoin savings (4%–6%) and institutional/private lending programs are attracting HNWI and corporate treasury activity, while Bitcoin- and Ethereum-backed savings yield under 2%. The piece highlights platforms built on conservative custody and risk practices (e.g., Aave, CoinRabbit) as likely beneficiaries as regulatory oversight and custody integrity become key competitive advantages.

Category

Bitcoin

Sentiment

Bullish

Event

Market commentary

Reading time

1 min