According to Henri Arslanian, JPMorgan will allow institutional clients to use Bitcoin (BTC) as collateral, as stated in his X post on Nov 8, 2025 (source: Henri Arslanian on X). The post does not include specifics on haircuts, eligible venues, custodians, or launch timing, so official implementation parameters are not provided in that source (source: Henri Arslanian on X). For context, JPMorgan’s Onyx Tokenized Collateral Network previously enabled tokenized money market fund shares to be pledged as collateral rather than BTC (source: JPMorgan Onyx announcement, Oct 11, 2023); traders should watch for any JPMorgan documentation detailing eligibility and haircuts, which typically set the framework for basis and funding dynamics in collateral-driven strategies (source: IMF research, Collateral and Financial Plumbing by Manmohan Singh, 2017).

According to @julian2kwan, IxsFinance is promoting BTC Real Yields by using BTC as collateral to borrow USDT and channel capital into its RWA tokens to increase platform TVL (source: @julian2kwan on X, Sep 27, 2025). The author states that more BTC deposited enables more USDT borrowing, which then funds additional purchases of the platform’s RWA tokens, creating a growth loop for TVL (source: @julian2kwan on X, Sep 27, 2025).

According to the source, Michael Saylor stated that Bitcoin offers the world’s best collateral and that issuing digital credit against BTC would yield the world’s best credit, source: public social media post dated Sep 21, 2025. The comment centers on the Bitcoin-as-collateral and digital credit theme relevant to BTC treasury strategies and crypto lending markets, source: public social media post dated Sep 21, 2025.

According to @richrines, lstBTC aims to transform Bitcoin from an idle asset into a liquid, yield-bearing collateral, as discussed at Token2049 (source: https://twitter.com/richrines/status/1921995194880135610). This innovation is designed to improve capital efficiency for traders and enable the development of structured financial products in the crypto market. For active crypto traders, lstBTC creates new opportunities for yield generation and leverage, potentially increasing Bitcoin’s utility as collateral across DeFi platforms and trading protocols.

According to Milk Road, BTC-backed loans allow traders to access cash without selling their Bitcoin holdings. By depositing BTC, traders receive fiat or stablecoins, which can then be used for further trading opportunities. Typically, these loans operate on a 50% loan-to-value (LTV) ratio. For instance, to borrow $10k, a trader must deposit $20k in BTC. However, if Bitcoin's value drops by 30% to $14k, the collateral value could decrease significantly, triggering potential margin calls. This scenario necessitates careful risk management and monitoring of Bitcoin price trends to avoid liquidation.