Wu Blockchain (@WuBlockchain): SVB: Bitcoin Lending Rebounds as Banks and Institutional Capital Enter the Market

SVB: Bitcoin Lending Rebounds as Banks and Institutional Capital Enter the Market Silicon Valley Bank said the Bitcoin lending market is recovering from the 2022 collapses of BlockFi, Celsius and Genesis and is evolving toward more institutionalized and transparent lending structures. Citing Galaxy Research, the report said crypto-backed lending reached $67 billion in Q1 2026, up about 49% year over year. Several major U.S. banks have begun offering Bitcoin-backed loans to select clients. Bitcoin loan rates remain elevated at 7.5% to 16%, but borrowing costs could decline as more banks, private credit funds and institutional capital enter the market. The report also said the Lightning Network could improve Bitcoin lending and payment infrastructure by enabling real-time collateral posting, margin calls and liquidations.