Crypto for Advisors: Bitcoin and Lending

Finance, an ancient discipline shaped by various moral philosophies, has seen borrowing and lending practices evolve over centuries. Early Islamic, Judaic and Hindu traditions prioritized mutual benefit and asset stewardship, focusing on equitable risk-sharing rather than interest payments. In this context, thoughtful and pioneering credit managers are emerging to integrate bitcoin, a distinctive digital asset, into a novel opportunity to reshape financial relationships. When added to the collateral package in structured lending, bitcoin’s inherent properties create potential benefits for borrowers, lenders and investors. By aligning the interests of all parties with a long-term perspective on asset value, bitcoin collateralization can foster a more sustainable and mutually beneficial approach to private credit.