CoinPost, a blockchain media outlet, reported on Monday that Silicon Valley Bank's crypto team released a report on the growth trend in the bitcoin (BTC) collateral lending market.

In the report, SVB crypto team director Anthony Vasallo (앤서니 바살로) and others said the bitcoin lending market is showing signs of maturation as participation by institutional investors and financial institutions increases. Citing Galaxy Research data, they said the volume of crypto asset loan origination, including bitcoin, reached $67 billion in the first quarter of this year. That is an increase of nearly 50 percent from a year earlier.

The report cited long-term holders seeking liquidity without selling their assets as a factor behind rising demand. The number of wallets holding bitcoin for more than 5 years runs into the millions, and 26 percent of all bitcoin has not moved for at least 7 years. The share rose from 21 percent in 2024.

Lending platform Ledn issued $188 million of asset-backed securities (ABS) in February backed by bitcoin collateral and received an investment-grade rating (BBB-) from S&P Global, the first bitcoin-related product to do so. Borrowers post bitcoin collateral equal to 200 percent of the loan amount, with automatic liquidation triggered when the loan-to-value ratio reaches 80 percent. Ledn did not record losses on its collateral loans even when bitcoin fell 48 percent from its peak last year.

Unchained, which operates a co-managed model, provides tax advisory and retirement account services along with loans.

The report said bitcoin collateral loan rates are higher than home and stock collateral loans, citing price volatility and a lack of competition as reasons. It also projected that if institutional money flows into securitised products such as Ledn's ABS, competition will intensify and rates will fall to levels seen in general securities-backed loans. It forecast that if the Lightning Network is used for lending, margin calls, collateral handling and liquidation could be processed instantly on the network.