Bitcoin lending is evolving into a more institutionalized sector, according to a report by Silicon Valley Bank (SVB). The shift is driven by the increasing desire of bitcoin holders to borrow against their appreciated assets for tax efficiency and other needs, while lenders are becoming more comfortable with overcollateralized loans secured by bitcoin. The industry has been reshaped following the failures of Celsius, BlockFi, and Genesis, which highlighted the need for conservative underwriting and transparent risk management. SVB notes that landmark transactions, such as Ledn's $188 million asset-backed security, the first bitcoin-collateralized deal to receive an investment-grade rating, demonstrate growing confidence in BTC-backed credit structures. Although bitcoin-backed loan rates currently range from 7.5% to 16% APR, SVB anticipates that increased participation from banks and private credit funds will narrow these spreads. Early signs of this trend include Strike's 7.5% rate on large term loans, supported by a $2.1 billion credit facility from Tether.