Bitcoin is the largest pool of pristine collateral in the world.

It is scarce, globally settled, politically neutral, and cannot be diluted. Few assets combine monetary premium and liquidity at this scale. Yet borrowing against bitcoin remains expensive, fragmented, and short-term.

That mismatch is not primarily about volatility. It is about market structure. BTC-backed lending exists. But BTC-backed credit markets, in the mature sense, largely do not.

Loans Are Not Markets

If you post BTC as collateral and borrow dollars, the mechanics are simple.

Bitcoin is locked. Cash is advanced. If the loan deteriorates, the BTC is liquidated. That is origination.

In mature…

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