Silicon Valley Bank says Bitcoin lending is rebuilding after the BlockFi, Celsius and Genesis wipeout, with Galaxy Research pegging crypto-backed lending at $67B in Q1 2026, up 49% year over year. The market is shifting from cowboy CeFi toward bank and private-credit rails, but rates are still expensive at 7.5% to 16%. SVB’s real signal is that banks are no longer just tolerating BTC collateral; they’re starting to package it into institutional lending infrastructure, with Lightning framed as possible plumbing for real-time margin calls and liquidations.

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