The term cryptolending essentially describes a simple principle: Investors deposit their cryptocurrencies as collateral and receive a loan in return – usually in stablecoins such as USDC or in fiat currency.
Similar to a classic Lombard loan from banks, the digital asset serves as collateral. If the value of the deposited cryptocurrency falls below a certain threshold, automatic liquidation may occur.
For investors this means: They can release liquidity without having to sell their coins. At the same time, new revenue and financing models are emerging around digital assets.
After a period of strong turbulence in the lending sector, there is now significant progress again.
Coinbase expands onchain lending to XRP, ADA and LTC
The US crypto exchange Coinbase is further expanding its offering in the area of crypto-collateralized loans. In the future, US users will be able to deposit not only Bitcoin or Ether as security, but also XRP, Cardano (ADA) and Litecoin (LTC). The loans are processed via the DeFi protocol Morpho on the Layer 2 blockchain Base.
Specifically, users can borrow up to $100,000 in USDC by using their holdings of XRP, ADA or LTC as collateral. This is strategically interesting for investors: Anyone who is bullish on these assets in the long term does not have to sell them to obtain short-term liquidity. Instead, they remain invested and can use capital at the same time – for example for new investments or for hedging.
COINBASE ADDS XRP, ADA, LTC AS COLLATERAL FOR ONCHAIN LOANS
US users can now borrow up to $100,000 in USDC against XRP, Cardano, and Litecoin via Morpho on Base, as Coinbase’s crypto-backed lending products expand beyond Bitcoin and Ether. pic.twitter.com/SI12IspUmu
— Coin Bureau (@coinbureau) February 19, 2026
What is particularly noteworthy is the diversification of collateral. While many providers have previously relied primarily on Bitcoin and Ethereum, Coinbase is now opening its credit offering to other large altcoins. This indicates growing confidence in the market structure and liquidity of these assets – and underlines that onchain lending is becoming increasingly institutional and broad-based.
Ledn places Bitcoin-backed bond on the ABS market for the first time
At the same time, the crypto lender Ledn achieved a milestone in the institutional sector: The company placed Bitcoin-secured asset-backed securities (ABS) with a volume of $188 million. This is the first bond issuance of its kind to use Bitcoin as the underlying collateral in the broader ABS debt market.
Crypto lender Ledn completed a $188 million Bitcoin-collateralized asset-backed securities deal, marking the first ABS issuance backed by BTC in the broader asset-backed debt market, pic.twitter.com/mWCxXwSgqb
— Coin Bureau (@coinbureau) February 19, 2026
In the classic financial system, banks or financial service providers bundle loan claims – such as mortgages or car loans – and package them into tradable securities. Exactly this principle has now been transferred to Bitcoin. Behind the bonds issued are loans that are secured by BTC. This gives investors access to a structured financial product with Bitcoin exposure without having to hold BTC directly.
This is a strong signal for the market: Bitcoin is increasingly being accepted as an institutionally usable security instrument. While crypto lending has been burdened by insolvencies and loss of trust in recent years, this ABS transaction shows that professional structures are being established. The connection between the classic capital market and digital collateral is thus becoming closer.
Bitcoin-L2 as the next step: Is DeFi coming native to Bitcoin?
The latest developments in crypto lending show: DeFi structures are becoming increasingly professional and capital market ready. However, so far the majority of this innovation has taken place on networks such as Ethereum or Solana. In this context, Bitcoin mostly only played the role of “digital gold” – as a passive security asset. But this is exactly where a new narrative could develop: Bitcoin Layer 2 solutions have the potential to bring decentralized financial applications directly into the Bitcoin ecosystem.
The idea behind it is simple: While the Bitcoin blockchain itself remains deliberately conservative and security-oriented, layer 2 structures take on more complex functions such as smart contracts, lending, staking or even prediction markets. If we succeed in attracting liquidity and developers from established DeFi ecosystems to Bitcoin, this would structurally increase the demand for BTC as a base asset. Because every application on a Bitcoin L2 ultimately requires Bitcoin as a foundation.
A project that aims precisely at this interface is Bitcoin Hyper. The concept combines core features of Solana – high transaction speed, low fees, smart contract flexibility – with the brand strength and security of Bitcoin.
Directly to the Bitcoin Hyper Presale
Technically, an architecture is to be created that uses wrapped Bitcoin structures via a bridge and is based on a virtual machine-like environment. This would allow developers to build applications that behave like typical Solana or Ethereum dApps, but are ultimately anchored in the Bitcoin ecosystem. This would expand Bitcoin from a mere store of value to a productive infrastructure.
The market interest appears to be there: around $31.5 million has already been raised in the presale – a signal of momentum in an environment that has recently been rather risk-averse. In addition, a staking yield of around 38% APY is currently offered, which is intended to incentivize early investors to hold their tokens for the long term and tie up liquidity in the system.
This opens up an asymmetric opportunity for speculatively oriented investors: If the “DeFi on Bitcoin” narrative prevails, early Layer 2 projects could benefit greatly. It is currently still possible to enter the presale at comparatively favorable conditions – the first book profits are already growing today.
Directly to the Bitcoin Hyper Presale
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