The growth case rests on a simple dynamic: as bitcoin ownership broadens and prices rise, holders increasingly want to borrow against appreciated collateral for tax efficiency, working capital or lifestyle needs, while lenders gain comfort underwriting overcollateralized loans secured by a highly liquid asset.

The bitcoin lending industry was reshaped by the failures of Celsius, BlockFi, and Genesis during the 2022–2023 crypto credit crisis. While each firm had different business models, they shared common vulnerabilities: maturity mismatches, excessive leverage, concentrated counterparty exposure and the rehypothecation of customer assets.

Their collapses underscored the importance of conservative underwriting, transparent risk…