Tether, Galaxy, LEDN dominates central encryption lend

It was not long ago that Crypto Linding resembles more in industry. BLOCKFI, Celsius, Voyageer, Genesis, once industry leaders, exploded in washing 2022-2023 great, wiping $ 25 billion loans and a lot of sector credibility.

Now, a new report from Galaxy Digital indicates a partial resurrection, led by a familiar group of survivors. Tether, Galaxy and LEDN have emerged as dominant players in central financial lending (CEFI), holding $ 9.9 billion of suspended loans at the end of 2024. This is approximately 90 % of the CEFI market, according to the residents of Galaxy Zach Boyki.

There is encryption lending to many causes of traditional borrowing. Traders are reviewing short symbols or increasing leverage, and their holders open in the long run liquidity without selling, and companies take loans to finance operations, and leverages get a negative return on lethargy assets.

Today, the total coding lending market is $ 36.5 billion, still 43 % less than its peak of $ 64.4 billion in late 2021. But the formation of this market turns quickly. Defi platforms are now 63 % of the encryption metaphor (except for the code supported from encryption), almost twice their share during the last race.

Central coding case

At its peak in late 2021-2022, Genesis, Celsius, and Bolockfi dominated, which together controlled 76 % of the market. Then the collapse came: the low prices of the distinctive symbol, and the management of dirty risks and toxic guarantees caused credit relaxation at the industry level. By the first quarter of 2023, the total loan book in CEFI collapsed to $ 6.4 billion. Since then, it has grown to $ 11.2 billion, by 73 % recovery, but it has still decreased two -thirds of its peak.

The new trio filled the void:

• Tether, who has long known as a dollar stablecoin, has become a lend to heavy weight.
• Galaxy Digital, billionaire Mike Novogratz for encryption, showcase themselves as one of the largest active loan books in this industry.
• Liden, the lender that focuses on Toronto -based Bitcoin, comes out of the new cartel.

Together, they control 89 % of the remaining central encoding lending and 27 % of the total encoded lending market when the cdecoins supported from encryption is included.

The calm ascent from Devi

While lenders like Galaxy and LEDN fought to stay standing on his feet, Defi protocols quietly expanded its share on the market. Pits such as AAVE and Compound, which are governed by the blog, require borrowers to spread a more guarantee than borrowing, thus eliminating many of the risk of credit that paralyzed CEFI.

At the bottom of Bear Market in the fourth quarter of 2022, Borrowing Defi fell to only $ 1.8 billion. Since then, more than ten times has risen to 19.1 billion dollars through 20 platforms on 12 Blockchain. ETHEREUM is still the primary Blockchain for Defi lending, with $ 33.9 billion of assets deposited starting from March 2025. The lending is, in fact, the largest use of decentralized financing.

Cablecoins supported from encryption like $ 7 billion and $ 5 billion ETHNA USDE-third and fourth largest stablecoins after rope and Circle usdc-added. In the case of USDs, users close the encryption (for example, ETHER) in a smart contract as a guarantee, which is issued stablecoins after that. To reduce virtual risks, the value of the guarantee must exceed the value of the icons issued. On the contrary, USDE depends on a strategy to hedge the Delta, where encryption guarantees are associated with short positions in the derivative markets to keep the PEG one dollar. Galaxy notes that there may be some double waiver between central and decentralized loan books, as the founding lenders use these protocols and other Defi protocols to create loans to their customers.

Expectations

“The borrowing rate against bitcoin is now hovering anywhere from 5.5 % to 7 %. This has decreased from what we have seen over the past few months. It indicates that many people sit on the margin while operating tariff wars, but the lending market is still in a relatively strong place today.” Blockchain. “I think a lot is riding if the return for 10 years is a little bit control, and if the Federal Reserve will start seeing some inflation reduction and improving employment numbers. Then we will see a price reduction, and that will be useful for the prices of encryption assets.”

The wind was already turning in favor of a broader institutional re -entry. In July, Cantor Fitzgerald, the main goalkeeper for the Tether guarantee, announced plans to launch two billion dollars Bitcoin financing to provide a financial crane for Bitcoin (US Minister of Trade Minister Howard Lottenic is the former Cantor head, and he is now Cantor CEO, which is now born to Reins Sons). In January, the US Securities and Stock Exchange Committee canceled the SAB 121, which reduced the restrictions imposed on how companies circulating publicly dealt with the customer -controlled encryption. The move removed a large barrier for banks and institutions to participate in coding and lending custody. The investment funds circulating in Bitcoin, listed in the United States, have also opened new doors. As Galaxy notes, the main entrance to the brokers who provide lending and benefiting from these products already expands the market.

“[Cantor’s launch] It will determine an interesting trend, because Bitcoin is one of the very liquid assets that trade 24/7 around the world. It is more liquid and transparent than traditional fixed income, with a similar return for investment bonds. “Many large institutions retain Bitcoin, and they are able to convert this into a fixed product similar to income where you can gain the return very attractive,” Powell adds, “We, from other things, are looking at how to pack this asset for institutional consumption.

MAPLE recently launched a producer with Core, a bitcoin component that carries the return, allows institutions to gain the return on Bitcoin. “We have already seen $ 50 million of flows in less than two months,” says Powell. “I am interested in whether this is something of a Trojan horse for institutions to do more series.”