Is encryption lending迎來新浪潮? Bitwise CEO predicts: on-chain credit will reshape TradFi.

For a long time, Crypto Assets have often been regarded as high-risk speculative tools in mainstream perception, with investors seemingly always searching for the "next sucker" to take over. However, this perception is rapidly changing. Hunter Horsley, CEO of Bitwise, recently predicted that with the maturation of Decentralized Finance (DeFi) and asset tokenization technology, Crypto Assets will no longer just be speculative tools for buying low and selling high, but will become the core Collateral in the on-chain lending market, fundamentally changing the way the traditional credit system operates.

The DeFi lending platform has matured, laying the foundation for on-chain credit.

Horsley's perspective is not unfounded. Since 2020, decentralized finance platforms like Aave have facilitated over $100 billion in crypto assets lending transactions, proving the feasibility of blockchain in credit infrastructure. With the overall crypto assets market value currently stabilizing at around $4 trillion, more and more investors prefer to use their assets for collateralized lending rather than liquidating them directly.

Tokenization of traditional assets is further expanding the possibilities of on-chain lending.

Not only are Crypto Assets themselves being integrated, but traditional financial assets are also gradually moving "on-chain." According to McKinsey's report in 2024, the market size for the tokenization of traditional assets could reach as high as $2 trillion by 2030. Considering that the total value of the U.S. stock market is $60 trillion, this shift represents an opportunity for small investors and businesses to access credit resources on decentralized platforms, no longer limited by the thresholds and approval processes of traditional financial institutions.

Collateral instead of selling: A new narrative for Bitcoin's value

The maximum supply of Bitcoin is fixed at 21 million coins, a design originally intended to resist inflation, but which has now also become the value basis for its role as a long-term collateral. According to an analysis by the Brookings Institution in 2024, an increasing number of holders are choosing to "borrow instead of sell," allowing Bitcoin to further transition from a "speculative tool" to a robust financial asset. This strategy not only helps reduce market volatility but also makes crypto assets easier to integrate into the mainstream financial ecosystem, becoming the foundational collateral for corporate or personal credit.

The future of on-chain lending is promising, regulations and innovation need to go hand in hand.

Hunter Horsley's forecast paints a picture of a rapidly expanding on-chain credit ecosystem. However, to truly realize this vision, the role of regulatory bodies is also indispensable, in addition to technological maturity and market demand. How to promote innovative development while ensuring the safety of user assets will be key to the mainstreaming of crypto finance.

Is a new wave of Crypto lending coming? Bitwise CEO predicts: on-chain lending will reshape traditional finance. First appeared in Chain News ABMedia.