A report from Bitcoin infrastructure developer RootstockLabs argues that institutional Bitcoin holdings could create demand beyond their store-of-value role through lending, yield generation and balance-sheet financing. The report estimates that just 1.5% of Bitcoin's supply currently takes part in lending and Bitcoin-native finance, while identifiable institutional investors hold roughly 3.9 million BTC. In a hypothetical scenario where institutional holdings double to 7.8 million BTC and 5% of them earn a 5% annual yield, institutions would generate 19,500 BTC a year, which the report presents as potential returns rather than a demand forecast. Report author Tony DiCarlo acknowledged risks such as rehypothecation, excess leverage, borrower defaults and custody failures, but argued that on-chain verifiable collateral and programmable liquidation rules reduce some of them. He also cited MARA's $750 million in Bitcoin-backed loans to finance a power plant acquisition in Ohio, and warned that a few large custodians could end up holding most of the Bitcoin.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Cointelegraph ↗
Keywords
bitcoincryptolendingcollateral
Open a keyword to see other news on the same topic.
Related tickers and likely impact
BTC/USDT
• NeutralBitcoin
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Layer 1 |
| Market cap | $1.6T |
| Close on 10/28/2026 | 81,343.50 |
| Change that session | +0.54% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Bank of England opens consultation on tokenized collateral for clearing
The Bank of England has opened a consultation on how central counterparties (CCPs) can accept digital versions of eligible collateral, saying existing rules already allow this when assets meet clearing standards. The draft supervisory statement clarifies what CCPs must address in applications under the current approval process, covering collateral already accepted and qualifying types under the proposed UK CCP Rulebook that are not yet in use. The statement would create no new regulatory obligations. The BoE stressed that tokenized collateral must remain capable of being valued, transferred and realized, including under stress, and that faster cross-border movement could help firms meet margin calls. Deputy Governor for financial stability Sarah Breeden said the consultation advances the Bank's secondary objective of innovation in financial market infrastructure while maintaining financial stability. The consultation closes on Feb. 12, 2027, and the Bank expects to publish its policy response and rules later this quarter.
- Crypto Long & Short: Why real-world assets need fixed-rate loans onchain
Peter Gaffney of O2O Capital Partners argues that fixed-rate, fixed-term lending is the missing piece for real-world assets (RWAs) to scale in DeFi, since borrow rates on variable-rate pools move with utilization. Illustratively, Aave's USDC borrow rate can climb from 4% to 14% as utilization goes from 92% to 100%, while JAAA yields 4.5%–5% and the one-year average USDC borrow rate is 4.56%, leaving only 50 basis points of spread. The April 2026 KelpDAO rsETH exploit pinned Aave's USDC pool at 100% utilization, forcing borrowers to pay 14% for five days. Morpho has opened fixed-rate markets, which Coinbase used to launch fixed-rate crypto-backed loans in September 2026, while Kamino offers 5.3% fixed-rate loans against Figure's auto loan portfolio. The piece also notes that a 5% shift in Sky and Ethena reserves could create $1.8 billion of demand for RWAs.
- XRP Ledger is set to fix its lending code before anyone can use it
A XRP Ledger bug-fix package is expected to take effect around 09:34 UTC on Oct. 23 after reaching the 29 validator votes needed for approval. The fixes relate to Ripple's proposed uncollateralized lending system, which remains inactive because its lending and vault amendments have only 19 and 21 votes. The package also closes a loophole that let accounts permitted only to burn tokens create new ones, and revises vault rounding and loan-default rules. Even if both amendments reached 29 votes today, the article notes lending could not go live before early November, since neither has started its two-week countdown.
- NFT Marketplace Blur to Shut Down Website, Stop New Blend Loans Next Month
Ethereum NFT marketplace Blur will deprecate its blur.io frontend on November 12, 2026, but the marketplace protocol stays operational on-chain and BLUR holders will continue to control its fee switch. Blend, Blur's peer-to-peer NFT lending platform, will stop matching new loans the same day, so borrowers must repay or let their loans default before then, and Blur will later provide a tool to withdraw assets from Blend. The change comes as the NFT market has shrunk sharply: Statista projects 2026 global NFT revenue of $318.3 million, and CryptoSlam data shows monthly sales fell to $167.2 million in September from $554.8 million a year earlier. The move also follows the announced shutdown of Blast, the Ethereum layer-2 network launched by Blur's team, which said it costs more to run than it earns.
- Bank of England sets out approach to tokenised collateral in central clearing
The Bank of England has launched a consultation supporting central counterparties (CCPs) in accepting tokenised forms of eligible collateral. Tokenisation could allow faster and more efficient mobilisation and management of collateral across jurisdictions, helping firms respond to margin calls and supporting innovation in central clearing. The Bank says the existing regulatory framework is not a barrier, provided tokenised collateral can still be valued, transferred and realised when needed, including in stressed conditions. A proposed Supervisory Statement would clarify how the Bank assesses applications involving tokenised collateral, and the consultation closes on 12 February 2027.
- SoFi Jumps 11% as Lending Boom Drives Earnings Beat and Raised Outlook; Robinhood and Affirm Edge Higher
SoFi posted third-quarter 2026 results that beat expectations on revenue and profit, driven by lending, with record loan originations and a lower personal loan charge-off rate than the prior quarter. Management raised its full-year adjusted revenue and EPS outlook, even though its original guidance assumed rate cuts while rates have risen. SoFi stock rose 11% to $16.11 in morning trading, though it is still down 38% year to date. Robinhood gained 2% to $95 and Affirm rose 2% to $71.04, while the ARK Blockchain & Fintech Innovation ETF was essentially flat, suggesting the reaction is company-specific. The article notes that SoFi's lending-heavy model could face more balance sheet exposure and pressure on returns if borrowing costs keep climbing.
Related markets
Latest news
- With Nearly 4,300 Stores Nationwide, Is Bách Hóa Xanh Valued at Less Than VND 31,000 Billion?
As of October 29, Bách Hóa Xanh had 4,278 stores, up more than 1,700 since early 2026 and above MWG's plan to add 1,500. MWG's stake in its three chains, including Bách Hóa Xanh, AVA Kids and An Khang, is about VND 29,500 billion, implying a mechanical sum-of-the-parts valuation of under VND 31,000 billion (about USD 1.2 billion) for Bách Hóa Xanh, though the article says the actual value may differ due to conglomerate discounts. That is below the VND 35,500 billion (about USD 1.4 billion) valuation offered to CDH Investments in early 2024, when the chain had not yet broken even at company level. The chain targets revenue of about VND 55,500 billion and profit of VND 1,800 billion for 2026, and management expects to erase accumulated losses of about VND 7,000 billion within 2-3 years before an IPO.
- Rare Plunge for KOS: Hit Floor Price for 29 Consecutive Sessions, Market Cap Evaporates Nearly VND 6,000 Billion
KOS shares of Kosy Joint Stock Company closed at the floor price of VND 3,800 per share on October 29, down nearly 7%, marking the 29th consecutive session at the floor. More than 63 million shares were still waiting to be sold at the floor price, while only about 1.4 million shares changed hands. Compared with the close above VND 30,000 per share on September 18, the price has fallen more than 87%, shrinking market capitalization from over VND 6,500 billion to about VND 823 billion. Forced-sale notices kept appearing for shares held by Chairman Nguyễn Việt Cường, Mr. Nguyễn Trung Kiên, Kosy Real Estate and Leo Regulus, but most sell orders failed to match. Kosy said its real estate and renewable energy operations remain on schedule, and for the first half of 2026 it reported revenue of nearly VND 723 billion, up 9%, and profit after tax of about VND 15 billion.
- Alphabet Crushed Cloud Expectations, But the AI Bills Are Coming Due
Alphabet shares fell more than 11% on Thursday to near $287, one of the steepest single-day declines in the company's history, erasing $410 billion in market value. The drop followed the third-quarter report, which showed the first bottom-line miss against Wall Street consensus since the last quarter of 2022: earnings of $2.12 per share versus expectations near $3.02. An $8.2 billion unrealized loss on its stake in Space Exploration Technologies (SPCX) and a $5.2 billion cash payment for an EU antitrust fine weighed on the result. Google Cloud revenue more than doubled year over year and search queries posted their largest volume growth in five years, while capex reached $51.4 billion in the quarter, leaving a free cash flow burn of $9.1 billion. The article points to Google Cloud's backlog of $561 billion as evidence that AI demand is real, and says the core business remains a cash-generating engine.
- Prediction: This Magnificent ETF Will Crush the S&P 500 Over the Next 10 Years
Some leading investment strategists see a sluggish period ahead for the S&P 500, citing higher-for-longer interest rates and overvalued large caps, with a 10-year CAPE ratio above 40, the highest since the dot-com boom. The author argues the iShares Global Equity Factor ETF (GLOF) could beat the S&P 500 over the next decade: it is a global fund with 61% in U.S. stocks and 7% in Japan, holding stocks with the highest scores on momentum, quality, value, low volatility and size. The fund holds 684 stocks, with Apple, Nvidia and Microsoft as its largest positions. Over the past 10 years its annualized total return was 12% versus 15.4% for the S&P 500, but over the past one and three years it has outperformed: 15.8% vs 13.5%, and 24.1% vs 23.7%.
- Micron Is Up 225% This Year and Still Trades at 5 Times Earnings. Is It Too Late?
Micron is up 221.96% year to date and trades at about 5x forward earnings, while 24/7 Wall St.'s model carries a Buy rating with a $987.56 price target against an $877.55 reference price. Fiscal Q4 revenue reached $54.23B, beating the $50.97B estimate and up 379.27% year over year, and non-GAAP EPS of $33.42 topped the $31.35 estimate; gross margin widened to 87% from 45.7%. Management guided fiscal Q1 2027 revenue to $61.5B ±$1.5B and EPS to $38.15 ±$1.00. The bull case reaches $1,348.03 and the bear case $743.23, the latter citing memory's cyclicality and $30.71B of FY26 capex. Micron has committed more than 75% of fiscal 2027 shipments, yet the stock remains 27% below its all-time high.
- 4M Bitcoin Bought Above $85K Could Cap Recovery: Glassnode
Glassnode says about 4 million BTC held by long-term holders were bought between $85,000 and $118,000, mostly in 2025, while Bitcoin trades near $81,400. The average price U.S. spot Bitcoin ETFs paid is $81,500 according to Glassnode, leaving ETF holders near break-even. Analysts say the $84,000–$85,000 band has turned prices back several times, and a rally toward that level could prompt long-term holders to sell to break even. The Fed held rates at 3.75% to 4.00% in a 10-2 vote, while the 10-year Treasury yield sat just under 5%. ETF inflows picked up to about $424 million from Monday to Wednesday, but Tim Sun of HashKey argues the core issue is insufficient new buying rather than panic selling.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.