{"id":496059,"date":"2025-08-29T12:25:50","date_gmt":"2025-08-29T11:25:50","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=496059"},"modified":"2025-08-29T12:25:50","modified_gmt":"2025-08-29T11:25:50","slug":"tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter\/","title":{"rendered":"Tether leads as crypto borrowing soars to $44 billion in record quarter"},"content":{"rendered":"<p>Borrowing activity in crypto markets accelerated sharply in the second quarter of 2025, according to new <a href=\"https:\/\/www.galaxy.com\/insights\/research\/the-state-of-crypto-leverage-q2-2025\">figures<\/a> from <a href=\"https:\/\/cryptoslate.com\/companies\/galaxy-digital\/\">Galaxy Research<\/a>.<\/p>\n<p>The study found that loans backed by digital assets across DeFi protocols climbed to a record $26.47 billion, up 42.1% from the previous quarter.<\/p>\n<p>That surge lifted the overall balance of crypto-collateralized loans, including both DeFi and centralized finance (CeFi) platforms, to $44.25 billion at the end of June.<\/p>\n<figure id=\"attachment_496069\" aria-describedby=\"caption-attachment-496069\" style=\"width: 1164px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-496069\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113854.jpg\" alt=\"Crypto Collateralized Loans\" width=\"1164\" height=\"684\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113854.jpg 1164w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113854-300x176.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113854-1024x602.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113854-768x451.jpg 768w\" sizes=\"(max-width: 1164px) 100vw, 1164px\" \/><figcaption id=\"caption-attachment-496069\" class=\"wp-caption-text\">Total Crypto Collateralized Loans (Source: Galaxy Research)<\/figcaption><\/figure>\n<p>The increase of $10.12 billion quarter-over-quarter represents one of the largest jumps since the bull market years of late 2021 and early 2022, when outstanding loans briefly topped $50 billion.<\/p>\n<p>The report linked the recovery to a combination of rising crypto prices and stronger demand for leverage.<\/p>\n<p>Traders often use crypto lending to secure cash without selling their holdings, and with <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> and <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> recently breaking past previous all-time highs, more participants appear willing to lock up assets to capture liquidity.<\/p>\n<h2>Tether dominates CeFi lending<\/h2>\n<p>Galaxy Research reported that as of June 30, open CeFi loans stood at $17.78 billion, marking a 14.66% increase from the prior quarter. Compared with the bear-market low of $7.18 billion in Q4 2023, the sector has grown 147.5%.<\/p>\n<p>Stablecoin issuer <a href=\"https:\/\/cryptoslate.com\/companies\/tether\/\">Tether<\/a> maintained its long-running dominance, controlling more than half of the CeFi lending market. The company closed the quarter with $10.14 billion in open loans, translating into a 57.02% share.<\/p>\n<p>Nexo followed with $1.96 billion, while Galaxy\u2019s lending unit reported $1.11 billion. Together, the top three lenders accounted for 74.26% of the market.<\/p>\n<p data-start=\"1884\" data-end=\"2226\">This marks Tether\u2019s 12th consecutive quarter of sector leadership, a position it solidified after the collapse of <a href=\"https:\/\/cryptoslate.com\/dcg-sues-genesis-over-promissory-note-debt-amid-bankruptcy-challenges\/\">Genesis<\/a>, <a href=\"https:\/\/cryptoslate.com\/celsius-gets-go-ahead-in-legal-battle-to-recover-4b-in-bitcoin-from-tether\/\">Celsius<\/a>, Silvergate, BlockFi, and <a href=\"https:\/\/cryptoslate.com\/voyager-opens-withdrawals-for-transactions-submitted-prior-to-suspending-trading\/\">Voyager<\/a> in 2022.<\/p>\n<p data-start=\"1884\" data-end=\"2226\">Those failures, triggered by poor risk management and market turmoil, paved the way for Tether\u2019s share to climb from under 20% in mid-2021 to nearly 70% by late 2022.<\/p>\n<figure id=\"attachment_496067\" aria-describedby=\"caption-attachment-496067\" style=\"width: 1147px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-496067\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113548.jpg\" alt=\"Tether Dominates CeFi Lending\" width=\"1147\" height=\"637\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113548.jpg 1147w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113548-300x167.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113548-1024x569.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-29-113548-768x427.jpg 768w\" sizes=\"(max-width: 1147px) 100vw, 1147px\" \/><figcaption id=\"caption-attachment-496067\" class=\"wp-caption-text\">Tether Dominates CeFi Lending (Source: Galaxy Research)<\/figcaption><\/figure>\n<p data-start=\"2228\" data-end=\"2604\">While its dominance has eased slightly from those levels, Galaxy attributed the shift to multiple factors.<\/p>\n<p data-start=\"2228\" data-end=\"2604\">According to the firm, rising asset prices have created a reflexive cycle in borrowing demand, while corporate treasuries are increasingly turning to <a href=\"https:\/\/cryptoslate.com\/defi-crypto-lending-surpasses-19-billion-in-2024-nearly-doubling-cefi-counterpart\/\">CeFi lenders as a funding source<\/a>.<\/p>\n<p data-start=\"2228\" data-end=\"2604\">Moreover, the competition among lenders has also intensified, driving more attractive borrowing rates across the market.<\/p>\n<p data-start=\"2606\" data-end=\"2770\">The report suggests that these forces could continue reshaping the balance of power in crypto lending, even as Tether remains the undisputed leader in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Borrowing activity in crypto markets accelerated sharply in the second quarter of 2025, according to new figures from Galaxy Research. The study found that loans backed by digital assets across DeFi protocols climbed to a record $26.47 billion, up 42.1% from the previous quarter. That surge lifted the overall balance of crypto-collateralized loans, including both [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":496064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,46940,77968,60035,6849],"tags":[79378,76896],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto loans skyrocket 42% as Tether dominates CeFi lending<\/title>\n<meta name=\"description\" content=\"Tether maintains dominance in growing CeFi lending market with a 57% share amid rising crypto prices and intensified competition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tether leads as crypto borrowing soars to $44 billion in record quarter\" \/>\n<meta property=\"og:description\" content=\"Tether maintains dominance in growing CeFi lending market with a 57% share amid rising crypto prices and intensified competition.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-29T11:25:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/tether-loan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/tether-leads-as-crypto-borrowing-soars-to-44-billion-in-record-quarter\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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