Institutions Seek Traditional Features in Crypto Lending, Industry Executives Say

During the Consensus 2026 conference in Miami, representatives from crypto lending firms including Two Prime, Ledn, and Lygos Finance discussed evolving demands among institutional borrowers. According to panelists, these clients are increasingly favoring lending structures that emphasize custody, transparency, and standardized agreements, rather than the more complex and experimental DeFi products that characterized the previous market cycle.

Executives linked this shift to the fallout from crypto credit crises in 2022, which significantly reduced institutional trust in less-regulated products. Panelists suggested that aligning crypto lending practices more closely with traditional finance expectations could be key to rebuilding confidence and encouraging greater participation from large financial entities. The panel highlighted a notable trend: institutions now prioritize clear risk management and robust safeguards over high-yield, but higher-risk, decentralized lending products.