Record Crypto Loans Reach $73.6 Billion Amid DeFi Dominance

Crypto loans reached a record $73.6 billion in Q3 2025, a mechanism that's simpler than most beginners expect.

Borrowers deposit cryptocurrency as collateral and receive a loan in stablecoins or cash, repay with interest, and get their crypto back without ever selling it.

The market split into two camps: centralized platforms (CeFi) like Nexo and Ledn, and decentralized protocols (DeFi) like Aave and Compound, with DeFi now commanding roughly two-thirds of all lending activity.

Crypto loans work like a pawnshop, but for digital assets. The borrower hands over Bitcoin or Ethereum as collateral. The lender holds that collateral and issues a loan in stablecoins such as USDC, Tether, or Dai.