Dolomite has added $100 million in Bitcoin-backed collateral to its lending protocol. The collateral is held by custodian BitGo rather than being natively on-chain, meaning liquidations require off-chain custody settlement instead of instant on-chain sales. ConcreteXYZ holds exclusive borrowing rights against the collateral on Dolomite. This arrangement introduces a centralized settlement layer into what would otherwise be a permissionless DeFi lending mechanism.