Bitcoin lenders want crypto loans closer to traditional finance

At the Consensus 2026 conference in Miami, leaders from three major Bitcoin lending players — Two Prime , Ledn and Lygos Finance — highlighted a shift in the expectations of institutional borrowers. They are now looking for more standardized crypto credit structures, inspired by traditional finance (TradFi) mechanisms, rather than complex products from decentralized finance (DeFi). This trend marks a turning point after the 2022 crises, when the complexity and opacity of crypto loans had been pointed out as problems. The facts The collapses of platforms such as Celsius and BlockFi in 2022 revealed the risks associated with unregulated and poorly transparent models. Since then, financial institutions, particularly in North America and Europe, have expressed a preference for loans secured by clear underlying assets, with predictable repayment mechanisms. Players such as Two Prime , Ledn and Lygos Finance are responding to this demand by offering credit structures closer to those of traditional finance. Among the criteria highlighted by institutional borrowers are custody (secure management of assets), the transparency of processes and collateral, as well as standardized loan terms. The products offered stand out from DeFi protocols through their simplicity and their alignment with conventional finance practices, thereby reducing perceived risks. Why it matters This evolution could strengthen the position of traditional players in crypto lending, capable of offering solid guarantees and greater transparency. Conversely, less transparent DeFi protocols could lose market share to more secure solutions. In the longer term, this trend could accelerate institutional adoption of Bitcoin as a lending asset, reducing dependence on speculative mechanisms. Tokens linked to lending platforms, such as Bitcoin ( BTC ), could benefit from increased demand, particularly in institutional markets. This standardization could also foster better integration of Bitcoin into institutional investment portfolios, while reducing the systemic risks associated with unregulated crypto lending. What to Watch The rollout of new standardized lending products by the actors mentioned or by other players in the sector. Regulators' reactions, which could harmonize rules to govern these new products and strengthen investor protection. The impact on Bitcoin lending volumes and on the valuation of tokens linked to lending platforms. The evolution of institutional demand in other regions, notably in Asia and Latin America. Comparisons between interest rates and lending conditions offered by traditional players and DeFi protocols. This transition toward credit structures closer to traditional finance could redefine the crypto lending landscape, favoring broader and more secure adoption of digital assets by institutions.