From Fiona King

Writing to all ieyenews Cayman readers

from Brava CrossLedger after what’s been a remarkable few weeks in digital assets. If you’ve been following the regulatory momentum building around stablecoins (like the GENIUS Act in the US), you’ll know why the shift right now is bigger than most realise.

Stablecoins aren’t just being used for payments anymore, they’re rewriting the rules around credit markets, opening up entirely new ecosystems for lending.

Stablecoin lending markets are now a multi-billion-dollar market, spanning five major borrower types:

• Overcollateralized lending: ~$4B TVL across protocols like Aave, Compound, and Morpho, backed by ETH/wBTC.
  
• Market makers: ~$1–2B in active loans via Maple, Clearpool, and Credora; credit-based and partially unsecured.
  
• Delta-neutral funds: Estimated ~$1B+ borrowed for structured crypto strategies like basis trades and volatility farming.
  
• Undercollateralized off-chain lending: ~$500M+ across protocols like Goldfinch, Centrifuge, and Credix, funding SME and fintech credit.
  
• Tokenized RWA lending: $1.5B+ in tokenized Treasuries and equities (via Ondo, Backed, Swarm) now used as collateral for low-risk borrowing.

To see where institutions stand, we recently surveyed 200 wealth managers and allocators across 13 countries. 

Four key signals emerged:

1. Trustee and client pressure is mounting – 97% of institutions say they’re under pressure to engage with digital assets.
   
2. Bitcoin isn’t enough – 79% are actively seeking alternatives beyond BTC.
   
3. Yield is back in focus – 96% expect to increase allocation to yield-focused strategies over the next 24 months.
   
4. Stablecoins are now core infrastructure – 98% of institutions see them as foundational to DeFi.

The full research report covers strategy shifts, risk frameworks, and how regulation is reshaping access. 

 Brava Labs LTD, 86-90 Paul Street, London, London EC2A 4NE, United Kingdom

If you’d like access, email me at <[email protected]>know and I’ll send it over.