SVB Says Bitcoin-Backed Lending Is Evolving Into an Institutional Market
Summary
- Silicon Valley Bank said the Bitcoin (BTC)-backed lending market is becoming more institution-led and evolving into a more stable financial market.
- SVB said Bitcoin is viewed as a collateral asset because it can be liquidated immediately, traded globally, settled quickly and used as a fungible asset, and that major US banks have begun offering Bitcoin-backed lending services.
- SVB said the crypto-backed lending market grew 49% from a year earlier to $67 billion, and projected that the retail Bitcoin-backed lending market could grow to $1 trillion within the next decade.
Forecast Trend Report by Period
The market for Bitcoin-backed loans is becoming increasingly institution-led and is evolving into a more stable part of the financial system, according to a Silicon Valley Bank analysis.
CoinDesk reported on June 29 that SVB said in a report that Bitcoin is viewed as a collateral asset because it can be liquidated immediately, traded globally, settled quickly and used as a fungible asset.
SVB said major US banks have begun offering Bitcoin-backed lending services. The broader crypto-backed lending market grew 49% from a year earlier to $67 billion.
The bank added that the retail market for Bitcoin-backed loans currently stands at about $3 billion, but could expand to $1 trillion within the next decade as long-term holders seek more liquidity.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.