Collateral

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Collateral

What is Collateral?

Collateral is the cryptocurrency asset that the borrower pledges as security for the repayment of the loan in the context of crypto-backed lending. Mortgages are a typical type of collateral in traditional banking; the asset being financed (a house or an apartment) is typically the collateral securing the credit. After the credit is fully repaid, the cryptocurrency collateral is given back.

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