Just finished reading @BabylonLabs_io latest update and one comparison kept sitting in my head.
The post opens with two institutional milestones. JPMorgan accepting Bitcoin as loan collateral for institutional clients. The CFTC approving Bitcoin as collateral for regulated derivatives back in October 2025.
That already tells you something.
The debate over whether Bitcoin can function as collateral feels largely settled at the institutional level.
The part that caught my attention came immediately after.
Babylon points out that on-chain credit has grown into roughly a $64B market, yet only 11% of Bitcoin is active within it.
Which makes the bottleneck feel less like conviction and more like infrastructure.
If institutions already accept Bitcoin as collateral, but native BTC still isn't widely usable on-chain without bridges or wrapped assets, the missing piece isn't demand.
It's the rails.
That's where Babylon positions Trustless Bitcoin Vaults. Not as another lending product, but as the infrastructure that lets native Bitcoin fit into existing credit markets without changing its custody model.
Makes me wonder if the next phase of Bitcoin adoption is less about convincing people that BTC has collateral value...
...and more about giving that collateral somewhere native to go.
#baby $BABY
The post opens with two institutional milestones. JPMorgan accepting Bitcoin as loan collateral for institutional clients. The CFTC approving Bitcoin as collateral for regulated derivatives back in October 2025.
That already tells you something.
The debate over whether Bitcoin can function as collateral feels largely settled at the institutional level.
The part that caught my attention came immediately after.
Babylon points out that on-chain credit has grown into roughly a $64B market, yet only 11% of Bitcoin is active within it.
Which makes the bottleneck feel less like conviction and more like infrastructure.
If institutions already accept Bitcoin as collateral, but native BTC still isn't widely usable on-chain without bridges or wrapped assets, the missing piece isn't demand.
It's the rails.
That's where Babylon positions Trustless Bitcoin Vaults. Not as another lending product, but as the infrastructure that lets native Bitcoin fit into existing credit markets without changing its custody model.
Makes me wonder if the next phase of Bitcoin adoption is less about convincing people that BTC has collateral value...
...and more about giving that collateral somewhere native to go.
#baby $BABY