PANews reported on May 7th, citing CoinDesk, that at Consensus 2026, executives from institutional Bitcoin lending institutions stated that following the 2022 crypto credit crisis, institutional borrowers are increasingly favoring transparent custody, standardized contracts, and clear risk management, rather than complex DeFi products. Alexander Blume, founder of Two Prime, pointed out that when explaining the workings of DeFi to institutions, they often indicated a preference for paying higher costs rather than risking financial loss.

Ledn co-founder Adam Reeds emphasized that borrowers' primary concern is the storage location of their Bitcoin collateral. Lygos Finance co-founder Jay Patel stated that borrowers need to conduct due diligence on lenders before using Bitcoin as collateral, paying particular attention to re-collateralization issues. Blume believes that the traditional financial system is built on the foundation of accountability, and institutional borrowers prefer identifiable intermediaries, standardized processes, and legal accountability, rather than a fully autonomous financial system. The future growth of crypto lending may depend on convincing institutions that Bitcoin collateralized loans can provide predictability similar to traditional finance.