Sygnum Chief Investment Officer: Banks prefer to use on-chain assets as collateral for crypto loans

According to Cointelegraph, Fabian Dori, chief investment officer of Sygnum Digital Assets Bank, said banks prefer on-chain assets as collateral rather than ETFs when offering crypto loans. On-chain assets are more liquid, allowing lenders to execute margin notifications in real time and provide a higher loan-to-value ratio (LTV). Dori pointed out that it is more ideal to hold tokens directly as collateral because they can be operated 24/7, while ETFs are difficult to operate when the market is closed. The LTV ratio of crypto loans refers to the ratio of the total loan to collateral, such as Bitcoin or Ethereum. Crypto loans fell sharply during the 2022 bear market, but the sector is recovering as cryptocurrencies become popular. Financial institutions are gradually accepting crypto loans, and traditional financial companies are also beginning to consider accepting cryptocurrencies as loan collateral. Figure Technology was listed on Nasdaq, with its share price rising by more than 24% on the first day, with a market value of more than US$6.8 billion. JP Morgan is also considering offering crypto loans, which are expected to be implemented in 2026.