Bitcoin lenders bet that closer control elements and more pronounced risk management can rebuild confidence in the sector, which is still haunted by the fall of the predecessors of Celsius and Blockfi.

The main Bitcoin lenders from the previous cycle imploded after transforming the user’s deposits into loans with their underestimated. When Bitcoin (BTC) prices fell and the liquidity dried, billions of customer funds were frozen or disappeared.

But these imploses do not prove that loans supported by cryptocurrencies are doomed to the project. Failures were largely the result of destitute risk management, not the model itself. According to Alice Liu, the head of research at Coinmarketcap, some platforms are now taking the right steps, such as excessive frameworking, while enforcing more severe liquidation thresholds.

“Better transparency and external care also help reduce the risk of a contractor compared to opaque models, such as Celsius,” said CointeLgraph.

But even when some time sheets do not promise revision and lower value indicators (LTV), a sudden swing in bitcoins can still stress credit models.

Bitcoin loans evolve from models from Celsius

The collapse of lenders, such as Blockfi and Celsius, presented flaws in a way that the early cryptographic lenders managed the risk. Their models were based on re -implementation, destitute liquidity management and excessive plants wrapped in an murky structure, which gave clients a little insight into the management of their assets.

Reveotecation is a practice borrowed from customary finances, in which brokers re -use customer security for their own transactions. It is a common and regulated strategy, but it is usually confined and revealed to customers with strict reserve requirements.

Platforms such as Celsius and Blockfi routinely used customer deposits, often without explicit disclosure of capital buffers or regulatory limits, exposing users to the risk of contractors and liquidity. The key difference was that Celsius aggressively sold to retail investors, while Blockfi had a stronger institutional trace. Blockfi relations from now Bankruit Crypto Exchange FTX and the sister company Alameda Research turned out to be just as toxic.

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According to Liu, the loan market in the current cycle consists of mature investors and less “retail”. This means that funds closed to loans made to Bitcoin are long -term owners, corporate tax and institutional funds.

“Their motivations are now focusing on access, optimization or diversification of taxes, not agriculture,” Liu said. “This reduced the pressure so that the products compete on better conditions; instead, the safety and risk assessment was set at the forefront of the product assessment by users.”

Reveotecation is still worried about many cryptographic users burned by Celsius. Platforms like Strike – Bitcoin Maximalist Jack Mallers – he promised that they would never get Bitcoin customers, while those who took steps to clarify how the model works and how it helps to reduce the cost of the loan through greater transparency.

“Some players are still giving up BTC, which means that they again use security for unsecured loans elsewhere. This is basically the same model of the” black box “that we saw in 2021-2022,” said Wojtek Pawłowski, CEO and co-founder of the answer.

“So, whether it is healthy or risky, really depends on the actual structure and how transparent it is.”

Loans supported by bitcoins issuing a return

Kryptan-Colaterized Loan companies belonged to the largest emerging crypto stars just a few years ago. Galaxy Research estimates that the total loan book reached the achievement of USD 34.8 billion in the first quarter of 2022.

But in the second quarter of this year, the Terra Stablecoin disaster caused a series of bankruptcies in the entire sector. The main lender, such as Blockfi, Celsius and Voyager Digital, were caught in a disaster.

The size of the loan book was $ 6.4 billion, which is 82% compared to the times of glory. The Bitcoin loan model once again gains adhesion, recovering $ 13.51 billion in open CEFI loans at the end of the first quarter of 2025, representing an boost of 9.24% of the quarter quarter, estimated Galaxy Research.

Today’s credit models have adopted improved risk controls, such as lowering LTV indicators and clear renovation guidelines. However, the basic structural risk is that the whole model is based on unstable resources such as bitcoins.

Business models of lenders, such as Celsius and Blockfi, were already brittle, but their cracks began to expand in full crisis when Bitcoin prices fell.

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Contemporary lenders have solved many of these problems using an excessive personnel and more severe margin enforcement. But even conservative LTVs can quickly unravel in acute crises.

“BTC remains unstable, where a 20% decrease can still cause mass liquidation despite the platform’s activity [monitoring] LTV and [enforcing] Real -time margin connection. If the platforms are repacing the protection on yield strategies (rehaipothecation, agriculture DEFI, etc.), the risk returns, “said Liu.

Unthreatening models of Bitcoin loans are not bulletproof

Bitcoin variability stabilized compared to the first years, but remains susceptible to edged daily swings.

According to Coingecko, at the beginning of 2025, Bitcoin often moved 5% a day among global commercial tensions, even falling to 77,000 USD in March.

“[Bitcoin-backed loans] They are safer, but not bulletproof, “said Mudie himself, co -founder and general director of Tokenied Investment Company Savea.

Even with lower LTV indicators and time sheets, which now forbid the firehouse, Mudie warned that cryptocurrency lenders are still working with a single security pool, the value of which can drop by 5% overnight.

Bitcoin loans unlock up-to-date cases of financial exploit. According to CointeLgraph on June 15, Bitcoin dalled loans allow users to smoothly sell their shares, helping them avoid taxes on capital profits, and even access the real estate market.

But Bitcoin purists remain careful. These cases of exploit often include customary financial intermediaries and legal systems, introducing up-to-date risk layers.

“Using bitcoins to buy a house is a great header. [Bitcoiners] Also know that real estate offers are undergoing many older systems, not only intelligent contracts, “said Mudie.

Instead, Mudie predicts more cryptocurical loan models: common multiple wallets, public visibility in the area, strenuous restrictions on reuse and automatic margin when prices fall. He added that platforms can protect users even more, borrowing up to 40% of the security value.

For now, loans supported by bitcoins are undergoing cautious revival driven by closer control elements and a stronger understanding of the risk that caused its first wave. But until the variability is at the root, even the safest models will have to remain humble.

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