Fabian Dori of Sygnum says banks prefer onchain crypto collateral over ETFs for loans due to liquidity benefits. Higher loan-to-value (LTV) ratios are possible with onchain assets. Centralized crypto lending dropped during the 2022 bear market but is rising again. LTV ratio determines amount of credit borrower can access.

Dori believes crypto-backed loans will grow as adoption increases. Traditional financial firms are starting to accept crypto as loan collateral. Figure Technology, a crypto-backed lending company, debuted on Nasdaq with share prices rising by over 24%. JP Morgan is considering offering crypto-backed loans to clients in 2026.

Read more at Cointelegraph: Why Onchain Crypto Collateral Can Get You Better Loan-To-Value Ratios