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    3. Web3: Foreign Media Reports Need for Safer Liquidity Tools in Crypto Collateralized Lending

    Web3: Foreign Media Reports Need for Safer Liquidity Tools in Crypto Collateralized Lending

    By: www.528btc.com|2026/08/18 19:51:00
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    CoinWorld reported:

    According to foreign media, as the scale of digital asset holdings expands, the market is shifting its focus from "how to buy" to "how to use existing assets." Artem Ponomarev, CEO of XPlace, stated that investors should be able to obtain liquidity without selling long-term holdings, provided that the lending tools themselves are more robust and transparent.

    DeFi Lending Scale is Not Small

    The on-chain lending market has already reached a considerable size. Data from DefiLlama shows that as of August 18, the total locked value of DeFi lending protocols is approximately $42.06 billion, covering 571 protocols, with Aave locking around $14.74 billion and active loan volume at about $11.26 billion.

    Ponomarev likens this model to securities pledge financing or mortgage financing in traditional finance. The core idea is that users can use Bitcoin, other crypto assets, or tokenized securities as collateral to obtain cash or stablecoin liquidity, rather than directly selling their assets. As long as the collateral price does not fall below the liquidation threshold, users can maintain exposure to their original assets.

    The article mentions that new collateral types are also entering the on-chain credit market. In August, XRP entered the Ethereum lending scene through Flare's FXRP and Morpho vaults filtered by Sentora, allowing holders to borrow Ripple USD without selling XRP.

    Tokenized Stocks Expand Collateral Range

    Tokenized stocks are seen as the next class of scalable collateral. Data from RWA.xyz shows that as of August 18, the value of tokenized stocks circulating on-chain is approximately $2.34 billion, while the total scale of on-chain real-world assets is about $38.21 billion.

    However, the legal attributes of these assets are not entirely consistent. Some tokens correspond to direct or beneficial ownership of securities, while others only track price as synthetic exposure. The article points out that this distinction directly affects whether collateral can be accepted, as well as its valuation, custody, and liquidation methods.

    U.S. regulators have also been pushing related products closer to the existing securities framework in recent months. The U.S. Securities and Exchange Commission stated in January this year that securities such as stocks, bonds, notes, and options remain subject to federal securities laws even if they are tokenized. In March, Nasdaq's tokenized securities framework was approved, allowing qualified securities and their tokenized forms to share the same stock code, CUSIP, shareholder rights, and order book. The New York Stock Exchange has also submitted related rule proposals.

    Risks Concentrated in Liquidation and Custody

    The article argues that the key to crypto collateralized lending is not to expand leverage but to control liquidation risks. Similar to traditional securities pledge loans, borrowers may face margin calls, forced selling, and changes in interest costs. Once in DeFi, these risks are compounded by 24-hour volatility and automatic liquidation mechanisms.

    The Bank for International Settlements previously pointed out that DeFi loans typically require over-collateralization because borrowers may remain anonymous, and the prices of collateral assets are more volatile. When the collateral ratio falls below the threshold, the protocol will automatically sell the collateral to repay the lender. This can lead to borrowers incurring losses, costs, and losing exposure to assets they originally hoped to hold long-term.

    Ponomarev believes that such products should adopt a more conservative loan-to-value ratio, continuously monitor the status of collateral, and clearly disclose interest rates and liquidation terms. If warnings can be issued before positions approach the liquidation line, borrowers will have the opportunity to add collateral or repay part of the loan early.

    The article also mentions that oracle design is one of the sources of risk. DeFi protocols rely on external price systems for collateral valuation; if price updates are delayed or manipulated, it may misjudge the health of positions; during rapid market declines, cascading liquidations may further depress prices.

    Institutional Gaps Remain in the U.S. Market

    In addition to market risks, U.S. investors also face issues related to custody and capital rules. Guidance from SEC staff indicates that non-securities crypto assets are not protected under the Securities Investor Protection Act; whether customer assets can be isolated and protected in the event of a broker-dealer bankruptcy depends on the specific holding method and whether they are included in the bankruptcy estate.

    The article also cites an August analysis by Crowell & Moring, stating that under current banking capital rules, digital asset collateral does not yet qualify for credit risk mitigation recognition. For non-bank lending institutions, whether they need state-level licenses may also depend on their specific business arrangements.

    Overall, this commentary suggests that as Bitcoin, tokenized stocks, and the on-chain credit market continue to expand, crypto collateralized lending is transitioning from a high-volatility trading tool to an infrastructure serving digital wealth management. However, to bring this model into a broader market, collateral standards, liquidation controls, and custody compliance remain unavoidable issues.

    -- Price

    --

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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