Bitcoin is being increasingly utilized as collateral for stablecoin settlements through innovative yield products such as ETFs and lending markets. Institutions are leveraging Bitcoin to secure loans or facilitate real-time payments in stablecoins like USDT and USDC. This trend is altering the traditional roles of Bitcoin and stablecoins, with Bitcoin moving beyond its store of value function. However, this integration raises concerns about potential risks, including the possibility of collateral loss due to Bitcoin's volatility and systemic fragility during market stress. Experts caution that without adequate regulatory frameworks, the growing interdependence between Bitcoin and stablecoins could lead to financial instability.