What is Crypto-Collateralized Loan?

Crypto-collateralized loans are a type of loan where the issuer accepts a cryptocurrency deposit as collateral to issue a loan in another cryptocurrency or fiat currency. The borrower must typically deposit a higher amount of initial cryptocurrency (than the loan total) to provide a buffer against the market volatility common to digital assets. Since these loans are collateralized (often overly so), they are commonly processed quickly (sometimes in minutes) and normally don't require traditional credit checks.