Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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Last updated: 

August 9, 2025

Swiss digital asset bank Sygnum is expanding regulated institutional access to the Sui blockchain with a suite of new products, including custody, trading, and lending services for its professional clients.

The Zurich- and Singapore-based bank announced Friday it will now provide institutional-grade custody as well as spot and derivatives trading for SUI.

Staking services are set to roll out in the coming weeks, while SUI collateral-backed Lombard loans are scheduled for launch in the fourth quarter.

Sygnum to Keep All SUI Holdings Off Balance Sheet for Bankruptcy Protection

All SUI holdings will be kept off the bank’s balance sheet and structured to be bankruptcy remote.

The initiative follows Sygnum’s July 2025 integration of SUI into its platform, making it the first Swiss bank to fully support the token.

Partnering with the Sui Foundation, the bank aims to tap demand from banks, asset managers, and high-net-worth individuals seeking secure and regulated access to blockchain ecosystems.

Sui Foundation managing director Christian Thompson said the collaboration strengthens the project’s links to global institutional investors.

Sygnum CEO Mathias Imbach described the bank’s role as operating at the “intersection” of digital assets and traditional finance, enabling clients to engage with new opportunities under a regulated framework.

Sui, created by Mysten Labs, a team of former Meta engineers, uses parallel transaction processing to boost scalability and supports applications in DeFi, payments, real-world asset tokenization, and gaming.

It has also moved early into the BTCfi sector, allowing Bitcoin holders to participate in DeFi without sacrificing security.

Sygnum holds banking and digital asset licenses in Switzerland, Singapore, Abu Dhabi, Luxembourg, and Liechtenstein.

In May, Sygnum added staked SOL to its Lombard loan collateral portfolio for double earning potential on one asset.

The crypto bank said it has added SOL to its portfolio of over 20 tokens as eligible collateral for its Swiss Franc, Euro, Singapore dollar, and US dollar-denominated Lombard loans.

Sygnum’s other Lombard loan collateral portfolio includes major coins like BTC, ETH, POL, and XRP.

Mill City Eyes $500M Raise for Sui Strategy

Earlier this month, Nasdaq-listed Mill City Ventures III announced plans to raise up to $500 million through a new equity agreement to expand its Sui token treasury.

The announcement came just days after Mill City secured $450 million via the sale of 83 million shares to institutional investors, including Pantera Capital, Electric Capital, ParaFi Capital, and FalconX.

The firm used those funds to purchase 76.2 million SUI tokens valued at $276 million. The remaining capital will support its existing short-term lending operations.

Mill City said it is positioning itself as a specialized SUI treasury, aiming to take advantage of the layer-1 blockchain’s focus on low-latency, scalable infrastructure for AI and gaming applications.

The firm’s new $500 million equity line was arranged with Alliance Global Partners and is intended to further scale its position in SUI.

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DeFi (decentralized finance) offers an innovative alternative to the traditional mortgage system, challenging long-standing yet largely inefficient lending processes in developing countries.

It could be revolutionary in emerging economies with limited access to stable long-term financing. Could fixed-rate lending protocols empower people to take control of their finances?

The lending dilemma in developing countries

Worldwide, major markets move in sync. When interest rates spike in one market, the whole world feels the ripple effect, even among markets of dramatically different sizes.

Every move the United States makes compounds the issue due to the dominance of the US Dollar and the influence of the US Treasury Market, which is the benchmark for global interest rates.

The effect goes both ways. Low and lower-middle-income countries are home to approximately four billion people, so their economic malaise – a state of economic stagnation or downturn characterized by persistent inflation or lackluster growth – will inevitably spill over.

Their economic development is already below average relative to other nations, heightening tensions.

Major lenders are often reluctant to service people living in developing countries because of high perceived risk.

These locations are susceptible to economic instability, which impacts long-term mortgage financing and increases loan defaults.

The lack of a stable local currency, standardized underwriting practice or credit bureaus complicates the conventional approach.

Emerging economies are in a transitional phase of economic development. Relatively high economic growth leads them toward becoming developed nations.

Even under these circumstances, mortgage lending remains poorly understood and inaccessible. DeFi poses a solution – fixed-rate lending protocols.

How DeFi fixes fixed-rate mortgages

Risk-averse centralized institutions with rigid standards dominate traditional lending systems, leaving people in developing countries without access to the funds to purchase a home.

Historically, they have been the only option, even though their processes tend to be outdated, inefficient and exclusionary.

DeFi can potentially democratize homeownership and stimulate the economy by providing an alternative financing solution less susceptible to local market volatility, supporting developing nations and their inhabitants.

Blockchain technology simplifies, secures and streamlines financial transactions, benefiting underbanked and unbanked individuals.

Research shows it directly correlates to improved economic empowerment, financial inclusion, user satisfaction and trust in financial institutions because it enables better access to financial services.

DeFi protocols leverage blockchain technology

Conventional mortgage document verification requires time-consuming cross-validation. The title management process is similarly inefficient and prone to human error and fraud.

Since property transactions and loan servicing involve multiple parties and extensive paperwork, borrowers are often confused about their loan term, interest rate or outstanding balance.

If the lender’s practice is not streamlined, going through conventional channels can take days or weeks.

The time-consuming mortgage underwriting process can take weeks, depending on how busy the lender is and whether the underwriter needs more information.

In comparison, it takes mere minutes to secure a DeFi loan.

DeFi protocols leverage blockchain technology for transparent, accessible and affordable fixed-rate loans, bypassing the inefficiencies and high costs associated with conventional banking.

They store all relevant property, payment and personal details in a tamper-resistant ledger to ensure accuracy and fairness.

Smart contracts facilitate and automate mortgage contracts.

This technology improves verification speed, reduces disputes and eliminates redundancies, enabling institutions to quickly verify documents and offer mortgages.

The process is more transparent, enhancing trust among those in developing nations.

The benefits of DeFi fixed-rate lending protocols

DeFi enables new forms of home ownership and property investment, which are ideal for those in emerging economies.

In peer-to-peer lending, for instance, they could earn a 15% annual percentage yield by lending stablecoins through crypto savings accounts or liquidity pools.

They could use smart contracts to enforce the payback period, reducing counterparty risk.

Asset tokenization enables fractional ownership of loan portfolios, allowing investors to own portions of real estate instead of purchasing it in full.

Communities can collect their funds in liquidity pools to help individuals take out mortgages they wouldn’t have been able to get alone.

Blockchain technology streamlines and lowers the cost of the mortgage process by making most intermediaries redundant.

Traditionally, lenders charge for originating the loan and may also require recipients to pay third-party closing costs for services like appraisals and title insurance.

DeFi has low overhead expenses, making the process more cost-effective.

The future of fixed-rate DeFi lending

Since the blockchain provides an immutable digital ledger, it provides a secure, transparent platform for lenders, borrowers and intermediaries.

Leveraging this technology for fixed-rate lending protocols helps reduce confusion and improve reliability, even in uncertain market conditions.

It could challenge the traditional mortgage process, reshaping the financial future.

Devin Partida is the editor-in-chief of ReHack and is especially interested in writing about fintech. Devin’s work has been featured on Entrepreneur, Forbes and Nasdaq.

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Sujha Sundararajan

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Sujha Sundararajan

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Sujha has been recognised as Women In Crypto 2024 by BeInCrypto for her leadership in crypto journalism.

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July 22, 2025

JPMorgan Chase is reportedly exploring lending against clients’ Bitcoin and Ethereum holdings starting next year, sources told the Financial Times. However, they cautioned that the plans are subject to change.

The move would make JPMorgan one of the largest US banks to endorse crypto into mainstream.

JPMorgan Chase CEO Jamie Dimon, who has been a vocal skeptic of Bitcoin, calling the asset a “fraud.” However, he recently said that stablecoins are “real,” adding that JPMorgan will be involved both in deposit tokens and stablecoins.

One source familiar with the matter told the FT that CEO Dimon, who once said he would fire any trader who traded crypto, has isolated some clients who dealt with crypto.

Lending against crypto would let users pledge their BTC and ETH holdings to borrow loans. Major US banks’ pivot to crypto-based services follows a bullish crypto regulatory environment under the Trump administration.

JPMorgan Already Allows Clients to Borrow Against Crypto ETFs

The NYC-headquartered bank said in June that it will allow selected clients to borrow against crypto ETFs, starting with BlackRock’s iShares Bitcoin Trust. JPMorgan said it has plans to expand access to other funds after the rollout.

The change would apply to wealthy clients, marking a shift in how cryptos are factored into credit decisions.

However, lending against the actual digital assets would be the next key step. That said, JPMorgan would need to work on resolving the technical aspects of handling crypto seized from customers who failed to repay their loans.

CEO Dimon also said that the bank will soon let clients buy Bitcoin, clarifying that it will not custody it.

Big Banks Cheer US GENIUS Act

JPMorgan plans to directly lend against cryptos arrive days after the week when crypto won big in America. President Donald Trump signed the GENIUS Act into law at the White House last Friday, creating a clear stablecoin regulation.

“The entire crypto community, for years you were mocked and dismissed and counted out,” said Trump, adding that this signing is a massive validation.

Large Wall Street banks cheered the signing of the bill, calling the move an easier way for banks to deal with crypto assets. However, JPMorgan has remained cautious, setting realistic predictions on stablecoins. The banking giant forecasted that the stablecoin market will grow to $500 billion by 2028.

The bank doubled down on the trillion-dollar forecasts, calling them “far too optimistic.”

“The idea that stablecoins will replace traditional money for everyday use is still far from reality,” the bank noted.

Financial technology (Fintech) companies may move away from traditional lending services, as decentralized alternatives offer more accessible loans with smaller fees.

Decentralized finance (DeFi) lending protocols enable users to lend and borrow their cryptocurrency for passive income in a permissionless manner, via smart contracts instead of numerous financial intermediaries.

The growing efficiency and accessibility of DeFi lending protocols may inspire more fintech companies to opt for them over centralized lending alternatives, according to Merline Egalite, co-founder of Morpho, the second-largest decentralized lending protocol.

He told Cointelegraph during an exclusive interview at EthCC 2025:

“Fintechs have realized that integrating DeFi is a strategic move. If they don’t do it, they will lag behind others because fintechs are competing on the UX and the product they give to users.”

“Fintechs are realizing that DeFi can provide a higher rate,” explained Egalite, adding that DeFi adoption can help financial institutions “provide the best financial products,” in terms of lending and trading.

This will inspire the lion’s share of global fintech firms to migrate to DeFi within the next three years, he added.

Related: Chainlink reveals compliance standard, targets $100T institutional crypto flows

Morpho is the crypto industry’s second-largest lending protocol, worth over $5.5 billion in total value locked (TVL) across 20 blockchains, behind AAVE’s industry-leading $31 billion TVL, DefiLlama data shows.

DeFi loans can present an important financial lifeline for global citizens without access to traditional banking infrastructure. 

Related: Trump administration mulls ‘debanking’ executive order: WSJ

DeFi’s permissionless nature helps bypass traditional banking restrictions

Increasingly more fintech firms are recognizing the advantages of DeFi’s permissionless nature, which removes financial intermediaries and centralized risks involved in the lending and borrowing process.

Fintech using traditional banking rails still risk losing their license or Application Programming Interface (API) access, Egalite said, adding:

“So are you hooked by large banks? In DeFi, you don’t fear that because there are no intermediaries. You just trust the code itself.” 

While fintech firms already recognize these advantages, regulated yield-bearing products may inspire even more financial institutions to explore DeFi lending in the future, added Egalite.

DeFi lending rose to a new cumulative all-time high of $66.7 billion in TVL on Friday, according to DefiLlama data.

AAVE protocol’s $31.7 billion TVL currently accounts for 47% of the total DeFi lending value, while Morpho’s $5.5 billion accounts for over 8.2%.

This marked a significant recovery for crypto lending, which saw a decline starting in 2022 when centralized finance (CeFi) lenders Genesis, Celsius Network, BlockFi and Voyager filed for bankruptcy within two years as crypto valuations fell.

Magazine: Crypto-Sec: $11M Bittensor phish, UwU Lend and Curve fake news, $22M Lykke hack

]]> https://earlybirdsinvest.com/fintech-firms-will-move-to-defi-lending-within-3-years-morpho-co-founder/feed/ 0 48298 https://earlybirdsinvest.com/defi-tvl-breaks-above-116b-as-lending-roars-back/ https://earlybirdsinvest.com/defi-tvl-breaks-above-116b-as-lending-roars-back/#respond Fri, 04 Jul 2025 01:49:12 +0000 https://earlybirdsinvest.com/defi-tvl-breaks-above-116b-as-lending-roars-back/

The DeFi market has rebounded at the beginning of July, with total value locked (TVL) rising to $116.416 billion, a level last seen in April. The 24-hour increase of 4.95% reflects rising crypto asset prices and renewed deposit flows into lending protocols, restaking services, and yield-bearing primitives.

As Ethereum and Solana continue to absorb most DeFi capital, restaking-led protocols such as EigenLayer and ether.fi have positioned themselves as structural pillars of on-chain liquidity.

At the top of the DeFi leaderboard, AAVE has reasserted its position as the dominant money market with $25.871 billion in locked value across 18 chains. The platform’s 2.62% month-on-month increase reflects user preference for maturity, scale, and liquidity depth, especially during periods of rising ETH borrowing costs. AAVE now holds over 22% of the TVL across DeFi, outpacing Lido and other restaking alternatives.

Lending has emerged as one of the most stable categories within DeFi, bolstered by protocols like Morpho, which posted a 25.35% monthly gain. Morpho’s traction is closely tied to its hybrid peer-to-peer lending structure and increased collateral caps, particularly for stETH. Its rapid ascent to $4.498 billion in TVL places it just outside the top 10 and firmly above legacy competitors like JustLend and Pendle.

Meanwhile, Pendle, which enables tokenized fixed-yield strategies, recorded a monthly increase of 11.71% to $4.822 billion. The continued appetite for principal-token and yield-token separation, especially in a market with few new lending primitives, shows the persistent demand for yield certainty, even if duration risk remains.

The Ethereum-native restaking ecosystem remains one of the few areas in DeFi attracting fresh capital. EigenLayer, with $12.145 billion in TVL, saw a 7.41% increase over the past month despite winding down parts of its points program. That increase shows its growing role as a collateral foundation for actively validated services (AVSs) and shared security mechanisms.

Another player in the restaking niche, ether.fi,  maintained its position with $6.72 billion, though its 0.11% growth over the past month signals a plateau following the rapid accumulation seen in Q2. Combined, EigenLayer and ether.fi now control over $18.8 billion, accounting for more than 16% of all DeFi capital, rivaling the entire TVL of Lido and Tron’s entire DeFi stack.

One notable outlier is Ethena, which saw a 5.74% decrease in TVL to $5.464 billion. The drawdown likely reflects redemptions of sUSDe and waning short-term enthusiasm for synthetic dollar yields after months of explosive growth. With Mcap/TVL now at 0.32, Ethena still holds a premium valuation, but the market appears to be cycling some capital into more sustainable yield venues.

The performance of BlackRock’s BUIDL token, while down 2.32% over the month, is a perfect example of the role real-world assets (RWAs) play in anchoring capital during volatile periods. With a Mcap/TVL ratio of 1.01, the fund remains fully backed by tokenized Treasury bills and shows little deviation in either direction. BUIDL’s $2.832 billion in TVL makes it the fifteenth-largest protocol in DeFi and the largest tokenized RWA instrument to date.

The marginal drawdown mirrors recent weakness in Treasury prices, rather than protocol issues. With yields climbing again on the front end of the curve, the question remains whether demand for tokenized RWAs can outpace capital rotation into higher-yield on-chain instruments.

Last week showed the convergence of spot and perpetual DEX volumes, which landed at $13.653 billion and $13.084 billion, respectively. This parity is unusual, as perpetual markets typically outpace spot by a wide margin, and may indicate a healthy shift toward hedging activity or organic demand for base-layer assets.

In previous periods of market euphoria, perpetual volumes often inflated disproportionately, driven by leverage-fueled speculation. The current ratio suggests more disciplined capital deployment, which could reflect the influence of larger players and more risk-aware strategies dominating DEX activity.

Ethereum continues to dominate DeFi TVL with $65.035 billion, representing over 55% of total locked value. Its 1-day (+6.42%) and 7-day (+6.21%) changes show strong and consistent inflows driven by asset appreciation and deposit migration back to L1 vaults.

Solana now commands $8.768 billion in DeFi TVL, a 5.67% 7-day increase. The chain continues to benefit from a resurgence in institutional and retail interest, likely supported by recent spot SOL ETF approvals in Canada and growing NFT activity. With several top-performing DEXs and yield farms, Solana has grown its share to 7.5%, the highest since Q1 2024.

Other networks, such as Base (+5.40% daily) and Sui (+9.77% daily), posted sharp one-day gains, hinting at new capital rather than just price effects. While these inflows are still modest in dollar terms, they mark a directional signal that Layer-2s and alt-L1s are beginning to claw back attention, especially as Ethereum fees remain elevated.

Stablecoins continue to serve as DeFi’s latent fuel. At $254.598 billion, the total market cap of stablecoins is more than double the value locked in DeFi protocols. This 2.19x ratio suggests substantial dry powder waiting for redeployment, especially if rates remain attractive and new structured products emerge. It also provides a buffer against forced liquidations in the event of sudden volatility, as more capital is sitting idle in pegged assets than in active yield strategies.

The first week of July has painted a picture of renewed strength for DeFi, especially in core lending and restaking segments. With a stablecoin surplus, maturing yield primitives, and clear user rotation back into blue-chip protocols, DeFi appears to be entering the second half of 2025 with stronger footing than at any point this year.

The post DeFi TVL breaks above $116B as lending roars back appeared first on CryptoSlate.

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Cantor Fitzgerald has launched a new $2 billion loan program backed by Bitcoin. According to a report, the firm has already closed its first deals. This move comes as crypto lending starts to find its feet again after big defaults in 2022.

Cantor Fitzgerald Launches Bitcoin Loan Line

Based on report by Bloomberg, Cantor Fitzgerald set aside $2 billion to lend against Bitcoin. The plan rolled out over the past year. It began in July 2024 with a promise to work with trusted custodians.

By April 2025, the global financial services firm teamed up with Tether, SoftBank and Bitfinex on Twenty One Capital, a $3.6 billion fund. That fund aims to hold more than 42,000 Bitcoin and was structured using a $200 million SPAC. The big picture: Cantor is serious about making Bitcoin loans a regular product.

Institutional credit continues to scale: Portfolio companies @maplefinance and @falconxnetwork are supporting origination and distribution for Cantor Fitzgerald’s $2B Bitcoin-backed lending arm. A key step in maturing crypto capital markets. https://t.co/YWZGLwntr5

— CMT Digital (@CMT_Digital) May 27, 2025

FalconX And Maple Get Backing

FalconX secured the first slice of credit, planning to tap more than $100 million. Maple Finance followed with a similar deal for its customers. Both firms confirmed they’ve drawn on the new line already.

These early loans show that trustworthy names can still access crypto financing. Demand is there, and lenders seem ready to pick up the pieces after the Celsius and BlockFi collapses.

Strong Bets From Big Investors

The bank’s faith in Bitcoin goes deeper than loans. Cantor Equity Partners quietly bought about $459 million of Bitcoin in May 2025 through a merger with Twenty One Capital. On top of that, Cantor holds nearly $2 billion in Strategy stock.

This stake ties their fortunes to price swings. They say they’ll keep buying even if prices drop sharply, showing they aren’t scared of the ups and downs.

Image: Shutterstock

Caution As Risks Linger

Other players are moving in, too. Strive raised $750 million to build a Bitcoin stash and chase special credit deals. Blockstream grabbed new investments, and Xapo Bank started offering its own crypto loans this year.

Traditional banks haven’t sat out. The Bank of Montreal put $150 million into crypto ETFs. Barclays added $130 million. BNY Mellon availed of $68 million in Strategy shares. Morgan Stanley, Wells Fargo and UBS are set to roll out spot Bitcoin ETF services by year-end.

Even so, Bitcoin can swing wildly. A sudden price drop or a margin call could force quick sales. Lenders and borrowers will need clear rules and solid plans to keep things running smoothly.

Featured image from Unsplash, chart from TradingView

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