Fabian Dori, the Director of Investments of Digital Asset Bank Sygnum, says that banks offering loans supported by Crypto prefer cryptographic guarantees in the form of onchain assets rather than funds (ETF) (ETF) (ETF), and the use of onchain collaterals can benefit borrowers.
Dori said onchain’s assets are more liquid, allowing lenders to execute margin calls Crypto back loans On demand and offer higher loan / value ratios (LTV) to borrowers because the lender can liquidate the warranty in real time. Dori told Cintelegraph:
“It is actually preferable to have direct tokens as guarantees, because you can do it 24/7. If you need to perform a margin call on an ETF on Friday at midnight, when the market is closed, then it is more difficult. So, the direct token is actually preferable from that moment.”
Loan / value ratios in Crypto refer to the total amount of a loan from the warranty supporting the loan, like Bitcoin (BTC), Ethereum (Ethn), or any other token accepted by the lender.
A higher LTV ratio means that the borrower is able to access more credit compared to their stated cryptography guarantee, while a lower LTV means that it will obtain a smaller loan for the same warranty amount.
The loans supported by the crypto are still in their infancy, said Dori, but he was convinced that the sector would continue to grow as the crypto wins a general adoption.
Financial institutions regularly adopt loans guaranteed by the crypto as Crypto lenders are making public On American scholarships and traditional financial companies (tradfi) warm up at the idea of accepting the crypto as a loan guarantee.
In relation: Korea of South Korea Caps Crypto loan rate at 20%, prohibit leverage loaks
Crypto Lending made its debut to Wall Street while Tradfi warms up to the loans supported by the crypto
Figure Technology, a crypto back loan company, Make his debut on the exchange of NasdaqAn American scholarship focused on Thursday.
https://www.youtube.com/watch?v=ly-Sjgrakrs
The company’s shares jumped more than 24% during intra -day negotiations on the first day, and the company currently has a market capitalization of more than $ 6.8 billion, according to in Yahoo Finance.
The financial service company JP Morgan also plans Offer loans supported by Crypto For customers, a development that would occur in 2026 if the inherited financial giant advances with the idea.
Review: Loans at home using crypto as guarantee: do risks prevail over the reward?
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