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Tether provides around 73% of centralized crypto lending – report
April 15, 2025
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Galaxy Digital has released a report on the cryptocurrency lending market, highlighting the central role of stablecoin issuer Tether. All the major centralized lenders in the previous crypto boom went bankrupt, and Tether has stepped into the void, becoming the dominant player with around 73% of the market. Since the last boom, the majority of crypto lending has shifted from centralized lending to DeFi lending.

Tether doesn’t hide its lending activities. Its stablecoin report for the end of 2024 shows its reserves include a secured lending balance of $8.2 billion. According to Galaxy’s data, the entire market for centralized crypto loans outstanding at the end of 2024 was $9.9 billion, with Tether having a market share of around 73%. This implies a minority of Tether’s loans are not for cryptocurrencies.

Many countries introducing stablecoin legislation prevent stablecoin issuers from participating in lending. That’s in part because they start to look like banks, including from a risk perspective. Doubtless Tether would point to the $7 billion in equity sitting within the issuer, which would cover a lot of mis-steps. However, the $8.2 billion lending sits alongside several other risky or volatile assets, including almost $8 billion in bitcoin.

Crypto lending: a risky business

The top three centralized lenders are Tether, Galaxy and Ledn, with a combined share of 88.6% of the centralized finance (CeFi) market. Whether or not that’s a good group to be part of remains to be seen, given the graphic showing the number of previous participants that went bankrupt.

However, Galaxy highlighted some of the risks taken by the previous batch of lenders, implying that practices have changed. For example, the previous lenders tended to lend long and borrow short term rather like banks, so they got into trouble when they needed more liquidity. Both Celsius and BlockFi also extended some loans without collateral.

Galaxy also pointed to the entrance of traditional finance (TradFi) players, including Cantor Fitzgerald, formerly led by the current US Commerce Secretary Howard Lutnick. Cantor previously announced plans to start crypto lending with $2 billion of financing initially. That could make it one of the larger players. The report also stated that SAB 121, which prevented banks from providing crypto custody also indirectly blocked them from involvement in lending because they needed to take custody. We’d note that Basel crypto rules for banks also make it tricky, although the rules do allow some hedging for crypto, hence collateralized loans can be partially offset.

Since the previous crypto crises, the balance of crypto lending has moved to decentralized finance (DeFi) which held up well during volatile times. At the height of the previous boom, DeFi made up just over a third, whereas now it is dominant. However, that’s in part because CeFi lending outstanding at the end of 2024 was only around a third of its peak in 2021. The figures exclude crypto collateralized products (CDP) – stablecoins backed by crypto.

With new centralized lenders attracted to the market, the pendulum could swing back.

 

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US Dept of Commerce to publish GDP data on blockchain

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List Of Cardano Wallets

Well-known and actively maintained wallets supporting the Cardano Blockchain are EternlTyphonVesprYoroiLaceADAliteNuFiDaedalusGeroLodeWalletCoin WalletADAWalletAtomicGem WalletTrust and Exodus.

Note that in case of issues, usually only queries relating to official wallets can be answered in Cardano groups across telegram/forum. You may need to consult with specific wallet support teams for third party wallets.

Tips

  • Its is important to ensure that you're in sole control of your wallet keys, and that the keys used can be restored via alternate wallet providers if a particular one is non-functional. Hence, put extra attention to Non-Custodial and Compatibility fields.
  • The score column below is strictly a count of checks against each feature listed, the impact of specific feature (and thus, score) is up to reader's descretion.
  • The table represents current state on mainnet network, any future roadmap activities are out-of-scope.
  • Info on individual fields can be found towards the end of the page.
  • Any field that shows partial support (eg: open-source field) does not score the point for that field.

Brief info on fields above

  • Non-Custodial: are wallets where payment as well as stake keys are not shared/reused by wallet provider, and funds can be transparently verified on explorer
  • Compatibility: If the wallet mnemonics/keys can easily (for non-technical user) be used outside of specific wallet provider in major other wallets
  • Stake Control: Freedom to elect stake pool for user to delegate to (in user-friendly way)
  • Transparent Support: Easy approachability of a public interactive - eg: discord/telegram - group (with non-anonymous users) who can help out with support. Twitter/Email supports do not count for a check
  • Voting: Ability to participate in Catalyst voting process
  • Hardware Wallet: Integration with atleast Ledger Nano device
  • Native Assets: Ability to view native assets that belong to wallet
  • dApp Integration: Ability to interact with dApps
  • Stability: represents whether there have been large number of users reporting missing tokens/balance due to wallet backend being out of sync
  • Testnets Support: Ability to easily (for end-user) open wallets in atleast one of the cardano testnet networks
  • Custom Backend Support: Ability to elect a custom backend URL for selecting alternate way to submit transactions transactions created on client machines
  • Single/Multi Address Mode: Ability to use/import Single as well as Multiple Address modes for a wallet
  • Mobile App: Availability on atleast one of the popular mobile platforms
  • Desktop (app,extension,web): Ways to open wallet app on desktop PCs
  • Open Source: Whether the complete wallet (all components) are open source and can be run independently.

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XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

 

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