Bitcoin-backed loans are increasingly becoming a mainstream source of credit, allowing borrowers to access liquidity for practical needs such as tuition payments and working capital without selling their Bitcoin, according to two long-term lenders. This indicates a profound shift in how digital assets are used, with Bitcoin no longer viewed solely as a speculative tool but as collateral for credit. Ledn, for example, has issued over $11 billion in loans to date and expects this to grow to $1 trillion in the coming years. Coinbase also added fixed-rate Bitcoin-backed loans to its retail application on September 22 via Morpho's Midnight protocol.