Stablecoins Drive Payments; Crypto-Backed Loans Eye Mortgages

Stablecoins are being used for cross-border payments and settlement, and executives at Gate and Zoomex say the next step could be crypto-backed lending moving into mortgages and everyday credit if key risks are managed. They identified price swings, custody arrangements and regulatory clarity as conditions lenders need before accepting crypto as long-term collateral.

Kevin Lee, chief business officer at Gate, and Fernando Aranda, marketing director at Zoomex, described stablecoins as a working payments tool and collateralized lending as the likely area for broader growth. Aranda described payments as “already solved” and argued that lending could convert crypto holdings into programmable collateral for instant, global credit.

Collateralized loans let holders access liquidity without selling assets. That appeals to high-net-worth individuals, crypto-native companies, miners, founders and investors with large digital positions. Executives also noted potential use in regions with limited formal credit, where crypto assets could serve as collateral when local credit systems are weak or absent.

Executives drew a clear distinction between small, short-term crypto loans and long-term products such as 30-year mortgages. Housing finance requires stable collateral values, lengthy repayment schedules and legal frameworks that allow lenders to value, seize and liquidate collateral through established processes. Crypto markets currently exhibit rapid price movement and inconsistent liquidity, which complicates long-duration loan design.

Lenders, according to the executives, want three things before extending large loans backed by crypto: stable prices, clear legal and regulatory rules, and trusted custody frameworks that meet legal standards for holding and transferring assets. Lee warned that volatility makes it difficult to set haircuts, margin levels and liquidation thresholds when collateral values can change sharply within hours. He also raised the possibility of a “risk transmission channel” where stress in crypto markets spreads into traditional lending and housing finance.

Aranda focused on liquidity shocks, hidden leverage and reliance on opaque intermediaries as risks that could amplify market declines. He said these factors can make forced liquidations faster and more damaging than price moves alone.

Industry leaders expect initial crypto-backed credit to target high-net-worth clients and corporate borrowers, then broaden as custody standards, infrastructure and regulation improve. Near-term products are likely to be shorter-term and lower exposure, including business credit lines, short-term liquidity facilities, secured personal loans and payment products linked to stablecoins.

Practical challenges cited include consistent asset valuation across trading venues, clear liquidation procedures, execution risk under stress and consumer disclosures that explain collateral ratios and liquidation mechanics. Executives said retail users often do not understand automated margin calls and liquidation triggers.

Both executives stated that payments via stablecoins have a commercial use case today, while collateralized lending faces a slower path before it can reliably support mortgages and other large, long-term loans due to the need for legal certainty, custody standards and stronger risk controls.