Despite already generating substantial profits, not only have they not cashed out, but they keep increasing their deposits and withdrawals. This suggests the big shot believes the current price has nowhere near reached the target level for distributing/selling off. $ETH $BTC
Why have global top-tier institutions already treated Bitcoin as a legitimate collateral—yet on-chain only a tiny fraction of BTC is actually being used?
Institutional clients accept Bitcoin as loan collateral, and the CFTC approved Bitcoin for use as collateral in regulated derivatives in October 2025. Traditional finance has clearly recognized BTC as a high-quality collateral asset. The reality, though, is this: on-chain credit markets have reached about $6.4 billion in TVL, but only around 11% of Bitcoin is participating. Infrastructure is the biggest bottleneck.
@BabylonLabs_io ’s Trustless Bitcoin Vaults (TBV) is built for exactly this.
TBV enables native Bitcoin to be used directly as collateral—without wrapping, without cross-chain bridges, and without any intermediaries. Loan terms are written in cryptography before the vault is created; redemption and liquidation are enforced by cryptographic proofs, not by relying on trusted third parties. The first live use case—native Bitcoin collateralized borrowing—has already launched on the Aave v4 testnet.
This means:
Your BTC always stays on the Bitcoin network, controlled by you; You can use it to borrow assets such as USDC/USDT and enjoy DeFi interest rates; The entire process is fully self-custodied and completely trustless.
I’ve actually gone through the testnet flow end to end: claiming test tokens, creating a Vault, submitting native BTC as collateral, and borrowing assets. The operation is straightforward, and the security logic is crystal clear. I recommend it to everyone who’s serious about understanding Bitcoin’s productivity potential in the future.
This isn’t just another “lending product.” It’s the key infrastructure that turns Bitcoin from something you merely hold into a productive collateral asset. Institutions are already taking action—the on-chain infrastructure should catch up, too.
The big-name institutions tell everyone online: no matter how the market gets smashed, the main funds have no intention of liquidating and exiting $BTC
A money printing and destruction integrated machine that can handle both inflation and deflation, its pricing for $HYPE has built extremely strong long-term bottom support!