The Future of the Credit Market

7 min readarticleIncludes quiz · 2 questions

BTC on balance sheets enables new borrowing/lending rails: BTC-backed credit lines, on-chain collateralization, and Lightning-native commerce. Counterparty and market risks remain—prudent leverage and transparency are essential.

Simple definitions:

  • •Collateral: Asset pledged to secure a loan.
  • •Loan-to-Value (LTV): Loan amount divided by collateral value.
  • •Liquidation: Forced sale of collateral if price drops too far.

Test Your Knowledge

This lesson includes a 2-question quiz (passing score: 75%).

Quiz functionality available in the mobile app.