Institutional bitcoin lenders shift to TradFi-style transparency and risk controls post-2022 crypto credit collapse

At Consensus 2026 in Miami, executives from Two Prime, Ledn, and Lygos Finance highlighted a major shift in institutional bitcoin lending. Following the 2022 crypto credit collapses, institutional borrowers now favor traditional finance (TradFi) features such as transparent custody, standardized contracts, and clear risk management over complex decentralized finance (DeFi) products. This change reflects a demand for predictable behavior, legal accountability, and identifiable intermediaries, moving away from the opacity and rehypothecation risks that caused past failures. The future growth of bitcoin-backed credit depends on aligning crypto lending with institutional expectations for simplicity and reliability rather than decentralization.