Opinion: Financial institutions hope that cryptocurrency lending will resemble traditional financial lending.

CoinFeed reported on May 7th, citing CoinDesk, that at Consensus 2026, executives from institutional Bitcoin lending institutions stated that after the 2022 crypto credit crisis, institutional borrowers are increasingly favoring transparent custody, standardized contracts, and clear risk management, rather than complex DeFi products. Alexander Blume, founder of Two Prime, pointed out that when explaining DeFi mechanisms to institutions, they often indicated a preference for paying higher costs rather than risking financial loss. Adam Reeds, co-founder of Ledn, emphasized that borrowers' primary concern is the storage location of their Bitcoin collateral. Jay Patel, co-founder of Lygos Finance, stated that borrowers need to conduct due diligence on lending institutions before using Bitcoin as collateral, paying particular attention to re-collateralization issues.