# Lending Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Lending", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

White House report challenges case for banning stablecoin yield as CLARITY Act debate intensifies

A White House report from the Council of Economic Advisers challenges the argument that banning yield on stablecoins is necessary to protect the banking system. The analysis, published on April 8, finds that prohibiting such yields would only increase bank lending by $2.1 billion (0.02% of total loans) while causing an estimated $800 million annual welfare loss for consumers. The report disputes claims that stablecoin yield draws significant deposits away from banks, noting that most reserves are held in Treasury bills and similar instruments, meaning capital largely remains within the financial system. Only about 12% of reserves held as cash-like deposits affect banks’ lending capacity. These findings come amid debates over the CLARITY Act, which proposes restricting yield-bearing stablecoins. The report suggests that a yield ban offers limited benefits to banks while reducing consumer returns and potentially hindering innovation in digital payments. It also frames stablecoins as part of a broader shift toward “narrow banking,” emphasizing benefits like faster settlement and reduced credit risk.

ambcrypto3h ago

White House report challenges case for banning stablecoin yield as CLARITY Act debate intensifies

ambcrypto3h ago

"Legal" Ponzi Scheme? Uncovering Gemini Exchange and Its Founders' Circular Lending

A recent report scrutinizes Gemini's financial practices, revealing a circular lending scheme involving its founders, the Winklevoss twins. Through their private investment firm, Winklevoss Capital Fund (WCF), they loaned thousands of Bitcoin and Ethereum to Gemini. The exchange then used these assets as collateral to secure hundreds of millions in USD loans from third parties like Galaxy Digital and NYDIG to fund operations. During its September 2025 IPO, Gemini settled $695.6 million of its debt to WCF by converting it into super-voting Class B shares at a 20% discount ($22.40 per share) compared to the $28 price public investors paid. This secured the founders 94.7% of the voting control. As of the end of 2025, Gemini still owes WCF 4,619 BTC (approx. $400M), which can be recalled at any time, posing a significant liquidity risk. Despite this, Deloitte issued an unqualified audit opinion without highlighting these related-party transactions or associated risks. Since its IPO, Gemini's stock price has collapsed by 88% to $4.42, facing multiple analyst downgrades and a shareholder class action lawsuit for allegedly misleading investors about its strategic and financial condition.

marsbit2 days ago 01:25

"Legal" Ponzi Scheme? Uncovering Gemini Exchange and Its Founders' Circular Lending

marsbit2 days ago 01:25

Manhattan Private Credit Launches Network to Connect Investors With Private Credit Markets as Bank Lending Continues to Contract

Manhattan Private Credit has launched a private capital network to connect investors with the growing private credit market, which has expanded into a multi-trillion-dollar sector as traditional bank lending contracts. The platform serves as an infrastructure layer, facilitating deal origination and capital matching across private credit, litigation funding, structured lending, asset-backed finance, and special situations. It connects investors, borrowers, developers, and legal firms who previously relied on fragmented, relationship-driven networks. The company emphasizes that its model resembles a platform business, matching supply and demand without originating deals itself. The growth of private credit is driven by banks retreating from areas like property development lending and bridge finance due to post-GFC regulations. Manhattan targets time-sensitive, event-driven opportunities where traditional banks are slow or disinterested. Access is provided through a membership structure, offering platform and network access rather than an investment product. The launch bets on the sustained structural gap between private lending demand and traditional bank supply.

TheNewsCrypto04/03 04:05

Manhattan Private Credit Launches Network to Connect Investors With Private Credit Markets as Bank Lending Continues to Contract

TheNewsCrypto04/03 04:05

How This Development Just Unlocked A $100 Billion Market For XRP

Crypto pundit Diana highlights plans by Evernorth to introduce native XRP lending on the XRP Ledger through the proposed XLS-66 amendment. This development aims to unlock up to $100 billion in idle capital by allowing investors to earn yield directly on the Ledger without bridging or wrapping XRP. The feature includes single-asset vaults, fixed-term loans, automated repayments, and enhanced confidentiality via zero-knowledge proofs. Currently in the validator voting phase, the amendment requires an 80% supermajority to pass. Once activated, it is expected to attract institutional investors by eliminating custody risks, avoiding taxable events from bridging, and leveraging the Ledger's native security. XRP is trading at around $1.34 at the time of writing.

bitcoinist04/02 00:32

How This Development Just Unlocked A $100 Billion Market For XRP

bitcoinist04/02 00:32

Deciphering Aave V4: A Transformation from Product to "Bank"

On March 30, Aave V4 officially launched on the mainnet, introducing a major architectural redesign centered around a unified liquidity model called "Hub and Spoke." The core change replaces isolated lending markets with a centralized liquidity pool (Hub) per chain or L2, which manages global liquidity, credit limits, and system constraints. Different Hubs (Core, Prime, Plus) cater to varying risk profiles and user needs. Spokes function as independent markets with custom parameters, allowing borrowers to access assets from the shared pool under specific rules. V4 improves capital efficiency by introducing risk-based interest rates—where borrowers using volatile collateral pay higher rates—and a refined liquidation mechanism that only restores positions to a target health factor. Additionally, idle liquidity in Hubs can be automatically deployed to governance-approved yield strategies, boosting returns for suppliers and DAO revenue. While the update doesn’t radically change the lending experience for users with high-quality collateral, it transforms Aave from a product into a bank-like financial infrastructure. This sets the stage for future expansions into services like structured products, credit facilities, and investment banking operations.

marsbit03/31 09:06

Deciphering Aave V4: A Transformation from Product to "Bank"

marsbit03/31 09:06

Nexo Private Client Base Doubles Resulting in Expanded Premium Offerings

Nexo, a leading digital asset wealth platform, has significantly expanded its premium service, Nexo Private, following a more than doubling of its private client base since the start of the year and a 136% increase since 2025. Tailored for high-net-worth individuals and family offices with portfolios exceeding $100,000, the offering provides a personalized, relationship-driven experience that bridges traditional private banking and the crypto economy. This growth reflects a broader trend of affluent investors increasingly allocating to digital assets for diversification and strategic hedging, especially amid elevated borrowing costs in traditional markets. Nexo has responded by enhancing its suite of services, including dedicated relationship managers, a secure in-app chat feature, and advanced financial products like its award-winning Zero-interest Credit line, which allows eligible clients to borrow up to $100 million interest-free. The platform also offers improved fixed-term investments, OTC trading with deep liquidity, and exclusive lifestyle experiences, all supported by a robust, SOC-certified security framework. Operating globally in over 199 jurisdictions, Nexo continues to position itself at the forefront of integrating traditional wealth management principles with blockchain technology.

TheNewsCrypto03/27 02:19

Nexo Private Client Base Doubles Resulting in Expanded Premium Offerings

TheNewsCrypto03/27 02:19

Crypto’s $30 billion lending boom is changing the market – Here’s how

Crypto's lending sector, now valued at $30 billion, is emerging as a key pillar, shifting focus from Layer 1 blockchains like Ethereum and Tron. While L1s still dominate in value, lending protocols such as Aave and Morpho are at the center of a rapidly growing on-chain credit system. The rise of stablecoins as a medium of exchange and the expansion of tokenized assets are improving liquidity and market efficiency. This lending boom is creating a new "yield layer," where users earn returns through interest, leverage, and better capital utilization, turning holdings into productive assets.

ambcrypto03/26 06:45

Crypto’s $30 billion lending boom is changing the market – Here’s how

ambcrypto03/26 06:45

2025 DeFi On-Chain Revenue $80 Billion Panorama: Half of Lending Demand Is Borrowing from Oneself

This analysis provides a comprehensive breakdown of the $8 billion in on-chain yields generated in DeFi in 2025. The five primary sources are: AMM trading fees ($4.2B), lending interest ($1.76B), perpetual funding rates ($300M), real-world assets ($600-900M), and staking/MEV rewards. A key finding is that approximately half of all borrowing demand is recursive, where users borrow to leverage other yield sources. The report highlights that 58% of stablecoin TVL yields less than 3% APY, below U.S. Treasuries. It also notes that significant potential yield sources like on-chain options and insurance remain underdeveloped. A case study of the Sky protocol (formerly MakerDAO) shows its success in offering a 3.75% savings rate by sourcing ~70% of its yield from off-chain, real-world assets.

marsbit03/26 06:06

2025 DeFi On-Chain Revenue $80 Billion Panorama: Half of Lending Demand Is Borrowing from Oneself

marsbit03/26 06:06

Besides the Resolv Hack, This Type of DeFi Vulnerability Has Occurred Four Times Already

An attacker exploited a compromised off-chain signing key in the stablecoin protocol Resolv, minting 80 million USR tokens (pegged to USD) from a $100k–$200k USDC deposit within minutes. The stolen keys allowed unlimited minting due to a design flaw—lacking a minting cap—despite multiple audits. The attacker then converted USR to its wrapped version (wstUSR) and dumped it on DEXs, netting ~11,400 ETH (~$24M). This caused USR to depeg, trading at ~$0.25. The depeg triggered a second-phase crisis: lending markets (including Morpho and Fluid/Instadapp) using wstUSR as collateral relied on hardcoded oracles that priced it near $1 instead of its real market value. Arbitrageurs bought cheap wstUSR, used it as overvalued collateral to borrow stablecoins, and amplified losses. Fluid absorbed over $10M in bad debt; Morpho had 15 vaults exposed. This incident repeats a known DeFi pattern: similar oracle failures occurred with Usual Protocol (Jan 2025), Stream Finance (Nov 2025), and Moonwell (late 2025), where mispriced collateral led to massive bad debt. Critics highlight flawed incentives in the "curator" model (e.g., Gauntlet), where third-party vault managers prioritize high yields without adequate risk controls, and protocols outsource risk management without enforcing safeguards. The root cause is systemic: over-reliance on static oracles for volatile assets and insecure off-chain infrastructure.

marsbit03/24 12:10

Besides the Resolv Hack, This Type of DeFi Vulnerability Has Occurred Four Times Already

marsbit03/24 12:10

$7.8mln ETH deployed into DeFi – Is Ethereum Foundation setting the tone?

The Ethereum Foundation has deployed 3,400 ETH (worth approximately $7.8 million) into DeFi protocol Morpho, signaling strong institutional confidence in Ethereum’s staking and lending ecosystem. This follows an earlier deposit of 2,400 ETH and $6 million in stablecoins in October 2025. The move is seen as a strategic effort to encourage broader DeFi adoption and strengthen Ethereum’s financial infrastructure. This activity coincides with growing institutional interest, including BlackRock’s Staked ETH ETF (ETHB) recording its largest inflow of 28,810 ETH ($67.18 million) and Grayscale’s Ethereum Mini Trust locking 76,800 ETH in under a week. Total Value Locked (TVL) in DeFi has surpassed $100 billion, with Ethereum dominating nearly 60% of the market. The upcoming CLARITY Act is expected to further accelerate institutional participation, positioning Ethereum’s DeFi as a key area for long-term investment and a hedge during market volatility. The Ethereum Foundation still holds over $400 million in ETH, underscoring its ongoing influence.

ambcrypto03/19 18:03

$7.8mln ETH deployed into DeFi – Is Ethereum Foundation setting the tone?