67% of crypto users think “borrowing against assets” is a risky & degen trick.
In TradFi, it’s a centuries-old wealth strategy used by the ultra-rich.
It’s called "Lombard Lending".
Here’s why it matters and why Billz finally makes it accessible for everyday use.
2/ Lombard lending = borrowing cash while keeping your assets invested (stocks, gold, real estate).
In TradFi, it’s used by private banks and family offices to unlock liquidity without selling stocks, bonds, or structured products.
Crypto is simply the next frontier.
3/ Mechanics (simplified)
You pledge an asset → bank sets a Loan-to-Value → you receive liquidity.
You keep ownership. You get liquidity instantly.
It’s the opposite of selling: it’s leveraging your balance sheet.
But you will pay a minimum margin (0.5%–3%)
4/ Collateral quality decides everything.
TradFi banks apply haircut tables:
- Government bonds → high LTV (60–90%)
- Blue-chip equities → medium (40–70%)
- Volatile assets → low (10–30%)
Crypto is treated similarly by regulated entities: higher volatility = lower LTV.
5/ The real risk drivers:
- Asset volatility
- Liquidity of the collateral
- Counterparty strength
- Execution of liquidations
- Interest rate exposure
If any of these break, you get liquidated fast (both in TradFi and DeFi).
6/ Why liquidations exist
The lender must remain fully collateralized at all times.
When collateral falls below thresholds, positions are sold automatically.
This mechanism is not a punishment, it’s risk containment.
TradFi private banks do it.
@kamino does it.
@JupiterExchange does it.
Same physics, different rails.
7/ Protections in quality setups
Regulated players apply:
- stricter LTVs
- daily (sometimes hourly) collateral checks
- stress-scenario modeling
- diversified liquidity venues
- custody segregation (key for crypto assets)
These rules echo FINMA/ECB margin standards.
8/ Why it matters for crypto users
Because most DeFi borrowing is… improvised.
Variable oracles, thin liquidity, chaotic liquidations, no supervision.
Bringing Lombard-style discipline into crypto borrowing unlocks:
→ safer leverage
→ predictable liquidity
→ institutional-grade risk control
Exactly what serious users need.
9/ Why Billz cares
When users off-ramp or pay taxes, they don’t want to sell their entire stack.
Lombard logic allows them to keep exposure while accessing liquidity in a clean, compliant flow.
It’s wealth-management infrastructure not degen leverage.
10/ Crypto doesn’t need new financial ideas
It needs better execution of the ones that already work.
Lombard lending is the perfect example.
Crypto users should be able to use their hard earned collateral, with barely any fees from banks.
576
1
Le contenu de cette page est fourni par des tiers. Sauf indication contraire, OKX n’est pas l’auteur du ou des articles cités et ne revendique aucun droit d’auteur sur le contenu. Le contenu est fourni à titre d’information uniquement et ne représente pas les opinions d’OKX. Il ne s’agit pas d’une approbation de quelque nature que ce soit et ne doit pas être considéré comme un conseil en investissement ou une sollicitation d’achat ou de vente d’actifs numériques. Dans la mesure où l’IA générative est utilisée pour fournir des résumés ou d’autres informations, ce contenu généré par IA peut être inexact ou incohérent. Veuillez lire l’article associé pour obtenir davantage de détails et d’informations. OKX n’est pas responsable du contenu hébergé sur des sites tiers. La détention d’actifs numériques, y compris les stablecoins et les NFT, implique un niveau de risque élevé et leur valeur peut considérablement fluctuer. Examinez soigneusement votre situation financière pour déterminer si le trading ou la détention d’actifs numériques vous convient.