Industry officials unanimously agreed that risk management must be prioritized if the crypto lending market is to continuously attract institutional funds. According to CoinDesk, at Consensus 2026 in Miami, USA, Alexander Blume, CEO of Two Prime, emphasized, "Institutions reject crypto lending not because they are against Bitcoin, but because it is difficult to explain the complex operational processes to their boards of directors and risk committees. The lending market needs to move closer to traditional finance rather than experimenting with DeFi." Throughout the panel discussion, attendees also pointed out that there is still a gap between DeFi's capital efficiency and the predictability and legal accountability required by institutions. In particular, as collateral re-use (the practice of using assets already provided as collateral for other transactions) was highlighted as a risk for the cascading collapse of crypto lending firms like Celsius in 2022, there were also calls for borrowers to directly scrutinize the collateral management structures of lending institutions.
