The digital credit market backed by bitcoin collateral is growing rapidly and emerging as a new financialisation area in the Bitcoin ecosystem. A UTXO executive said the bitcoin-collateral digital credit market has grown to about $16 billion and is among the fastest-growing areas in Bitcoin’s capital structure. He said continued growth in credit products built on Bitcoin could, over the long term, create a market that competes with Bitcoin’s roughly $1.5 trillion market capitalisation.

Credit trading loan balances in South Korea have risen again to more than 33 trillion won, reversing a recent decline, even as trading in single-stock leveraged ETFs has dropped sharply after tighter rules. Overall stock market turnover has slowed and investor deposit funds have slipped below 100 trillion won. Regulators are preparing additional investor-protection measures related to margin loans and unsettled trades, including tighter checks for minors and older investors and improved notice procedures.