Crypto Bank executives say on-chain collateral could bring more favorable loan terms

According to Coinjie.com, Fabian Dori, chief investment officer of Sygnum, digital asset bank, said that banks prefer to use on-chain assets rather than ETFs as collateral for cryptocurrency mortgage loans. Because on-chain assets are more liquid, they can achieve 24/7 margin notifications and provide a higher loan-to-value ratio (LTV). Dori pointed out that holding tokens directly is more conducive to real-time disposal of collateral, especially when markets are volatile. This field is developing steadily as traditional financial institutions gradually accept cryptocurrency collateral.