Two Prime, Ledn, and Lygos Finance Push TradFi Standards for Crypto Credit Growth

At Consensus 2026, executives argued that the next phase of crypto credit growth depends less on decentralized finance experimentation and more on adopting institutional-grade standards that resemble traditional finance.

“Bitcoin lenders say institutions want crypto credit to look more like TradFi At Consensus 2026 in Miami, executives from Two Prime, Ledn and Lygos Finance said institutional borrowers increasingly prioritize custody, transparency and standardized lending structures over complex DeFi products after the crypto credit collapses of 2022”

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Alexander Blume, founder and CEO of Two Prime, said institutions want predictability and legal accountability, adding, "We'll pay more.

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Don't lose my money" when explaining complex DeFi mechanics.

The panel also pointed to the 2022 crypto lending collapses of Celsius, Voyager, and BlockFi as warnings about opaque leverage, aggressive rehypothecation, and weak risk controls.

In Miami, speakers from Two Prime, Ledn, and Lygos Finance said institutional borrowers increasingly scrutinize where bitcoin collateral is stored and whether lenders rehypothecate assets.

Sid Powell, CEO and cofounder of Maple Finance, told CoinDesk that "DeFi is dead" as a separate category, while predicting that capital markets activity will settle on blockchains.

Powell argued that institutions will stop distinguishing between DeFi and TradFi as private credit moves onto the blockchain, and he said, "Eventually, all capital markets activity will be on-chain."

CoinDesk

In his view, stablecoins are positioned to drive payments growth, with the article forecasting that stablecoins could process US$50 trillion in transactions by 2026.

The same CoinDesk coverage also described how stablecoins are being adopted or considered after the approval of GENIUS, with PayPal launching PYUSD and Societe Generale issuing stablecoins pegged to the euro and the dollar through its crypto unit.

Powell’s forecast tied the shift to small businesses and neobanks seeking lower fees, alongside payment-network competition from Visa and Mastercard settlement networks for stablecoins.

Across the Consensus 2026 discussion, speakers framed future bitcoin-backed credit as depending on convincing institutions that crypto lending can offer predictable behavior, legal accountability, and identifiable intermediaries.

“The next phase of growth for crypto credit hinges not on more decentralized finance (DeFi) innovation, but on adopting institutional-grade standards”

Whalesbook

Adam Reeds, co-founder and CEO of Ledn, emphasized custody in a direct question: "The most important thing to ask... is where is your Bitcoin stored."

Jay Patel, co-founder and CEO of Lygos Finance, said borrowers increasingly need to “underwrite the lender” themselves before taking loans against their bitcoin holdings.

The panelists also highlighted rehypothecation as a central risk, with Blume describing institutional borrowers rejecting crypto-native lending structures when operational complexity is difficult to defend to boards, shareholders, and risk committees.

Together, the sources portray a market where institutional capital keeps flowing only if lenders can demonstrate transparent custody, standardized contracts, and clear risk controls that address the lessons of 2022.