2026-01-16 23:47:50

Bitcoin's role as a store of value is well-established. But here's the real challenge: can BTC actually work as productive collateral while keeping custody and settlement rock solid?

Turns out, using Bitcoin as collateral isn't straightforward. Native BTC design prioritizes two things—finality and simplicity. That's the foundation. The question now is whether institutional players can leverage these properties to unlock BTC's potential in DeFi and structured finance, without sacrificing the guarantees that make it trustworthy in the first place.

BTC-0.18%

DEFI5.39%

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ReverseTrendSister

· 11h ago

To be honest, I've never quite understood using BTC as collateral. Wanting to ensure finality and simplicity while also playing around in DeFi—aren't those like trying to have both fish and bear's paw?

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BlockchainArchaeologist

· 12h ago

Honestly, using BTC as collateral is a paradox... To achieve finality and simplicity, you have to dive into the complexities of DeFi. Are institutions playing with fire?

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QuietlyStaking

· 12h ago

To be honest, using BTC as collateral is really not easy. You want to ensure security and settlement certainty, but also want to do DeFi... it's a trade-off between two desirable things.

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OnChainSleuth

· 12h ago

NGL, this is the contradiction of BTC... If you want liquidity, you have to sacrifice security.

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SchrodingersFOMO

· 12h ago

I think this is a dilemma. Wanting BTC to serve as productive collateral while also ensuring that safety... Honestly, it's a struggle between the fish and the bear's paw.

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WagmiAnon

· 13h ago

Using BTC as collateral is easier to talk about than to actually do. If institutions want to get creative, they need to be careful not to ruin the trust foundation.

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