Wu Blockchain reports that Silicon Valley Bank (SVB) has released a report stating that the Bitcoin lending market is gradually recovering after the 2022 collapses of BlockFi, Celsius, and Genesis. The market is moving toward higher collateralization rates, greater transparency, and institutionalization. According to Galaxy data, as of Q1 2026, the crypto-collateralized lending market has reached $67 billion, a year-on-year growth of approximately 49%. Several major U.S. banks have started offering Bitcoin-backed loans to select clients, and Ledn has completed a $188 million Bitcoin-backed asset-backed securities (ABS) issuance, receiving an S&P BBB investment-grade rating. These developments indicate that the market is steadily integrating into the traditional financial framework. Currently, Bitcoin-backed loan interest rates remain in the 7.5%-16% range, higher than traditional securities-backed financing. However, as more banks, private credit funds, and institutional capital enter the space, financing costs are expected to decrease further. The report also highlights that the Lightning Network could be used in the future for instant collateral top-ups, margin calls, and liquidation processes, thereby improving the efficiency of Bitcoin lending and payment infrastructure and advancing Bitcoin toward becoming a mature credit asset class. https://www.(wublock123.com)/news/svb-bitcoin-lending-market-recovery-institutional-traditional-finance-63682