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Banks are increasingly favoring onchain crypto assets over ETFs as collateral for loans due to superior liquidity and real-time risk management. This preference enables higher loan-to-value ratios and more efficient margin call execution. The trend reflects the growing maturity of crypto-backed lending in traditional finance.
- Onchain crypto collateral enables real-time liquidation versus ETF settlement delays
- Higher LTV ratios possible due to instant liquidity and margin call execution
- 24/7 market access reduces counterparty risk for crypto-backed loans
📎 Related coverage from: cointelegraph.com
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