BTC-backed loan market evolving for institutions, says SVB

The market for loans backed by BTC is stable and evolving to be centered around institutional players, according to an analysis by Silicon Valley Bank (SVB). In a report cited by CoinDesk, SVB noted that BTC is now recognized as a collateral asset that offers immediate liquidation, global trading, rapid settlement, and fungibility. Institutional participation is also expanding, with major U.S. banks beginning to offer BTC-backed lending services. The bank highlighted that the overall crypto-backed loan market has grown by 49% over the past year to reach $67 billion. While the current market for BTC-backed loans to individuals is estimated at around $3 billion, SVB projected it could grow into a $1 trillion market within the next 10 years as liquidity demand from long-term holders increases.