Institutional crypto lending entails lending both cryptocurrencies and cash in exchange for a return.
According to the filings and interviews, unsecured lending has become common in the crypto industry.
According to Alex Birry, the crypto industry is seeing a general trend toward unsecured lending.
Voyager Digital, which declared bankruptcy in July and became one of the summer's biggest casualties, provides insight into the rapid growth of unsecured crypto lending.
Crypto research firm Arkham Intelligence estimated a value of $10 billion, while crypto lender TrueFi estimated a value of at least $25 billion.
According to Brent Xu, CEO of Umee, another peer-to-peer platform, the cryptocurrency industry will learn from its mistakes.