Stablecoin Emittent Tether is the largest centralized financial lender (CEFI) in the digital assets space, according to new analysis.
Zack Pokorny, a research analyst at the Crypto Investment Giant Galaxy Digital, notes That Galaxy and the Lending Firm LEDN from Bitcoin (BTC) were the second and the third largest lenders respectively.
Combined, Tether, Galaxy and LEDN’s loan book amounted to $ 9.9 billion at the end of the fourth quarter of 2024, consisting of nearly 89% of the CEFI credit market and 27% of the total market for crypto -lending. Coinbase, the best US crypto exchange, had the fourth largest loan book.
Alex Thorn, Head of Galaxy, out The total CEFI loan book size at the end of last year was $ 11.2 billion, a decrease of 68% compared to the 2022 all time high from $ 34.8 billion.
Decentralized Finance (Defi) represents a larger credit sector, with $ 19.1 billion in open loans in 20 borrowing applications and 12 chains towards the end of 2024, according to Pokorny.
The researcher notes that Defi -Loans in those chains and applications have risen by 959% because the soil was determined two years earlier.
“Defi-lenden has experienced a stronger recovery than that of CEFI loans. This can be attributed to the permissionless nature of blockchain-based applications and the survival of borrowing applications by the bear market chaos that large CEFI credit providers have received. In contrast to the largest CEFI credit that is no longer a test of the facts that are no longer being accelerated. Design and risk management practices of the large loan apps on chains and the benefits of algorithmic, overcollaterally and on supply/demand-based loans.
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