The 2022 crypto credit crunch didn’t just wipe out leverage. It forced the lending market to rebuild around collateral, risk controls, and transparency. Today, institutional lending is back, but on different rails.

We’re excited to share our newest collaborative research with FalconX: Institutional Digital Asset Lending After the 2022 Crunch: Consolidation, Transparency, and the Road Ahead.

Highlights from the research include:

The market is recovering, but it’s re-priced. After a ~78% drawdown from peak lending volumes, total lending (CeFi + DeFi + CDP stablecoins) recovered to $36.5B by Q4 2024. It remains below the prior peak, but growth is now driven by tighter standards.

DeFi is now a core institutional credit rail. DeFi borrowing rose to $19.1B and represented ~69% of crypto lending by year-end 2024, reflecting the value of on-chain transparency and automated collateral management.

CeFi is consolidating, and reinventing itself. Fewer, better-capitalized lenders are replacing the prior cycle’s failed platforms, supported by bespoke structures, stronger credit work, and clearer business models.

On-chain private credit is a powerful new lending vector. Originations surpassed $14B by July 2025 and ended the year above $20B, alongside the institutionalization of permissioned pools, KYC’d access, and investor-grade reporting.

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