Study says crypto credit infrastructure differs sharply across custody, collateral and execution models

Study says crypto credit infrastructure differs sharply across custody, collateral and execution models

N
News Editor
2026-07-18 01:58:12
A research report cited by Techub News says core segments of the crypto credit market operate on fundamentally different infrastructure. The study compares CeFi lending, DeFi liquidity pools, tokenized U.S. Treasuries and private credit tied to real-world assets, and finds major differences in custody arrangements, collateral management and execution methods. According to the report, CeFi structures concentrate counterparty risk, while DeFi protocols rely on on-chain smart contracts for automated execution. Those architectural differences shape how risk appears in each product and what compliance standards may apply. The report adds that risk assessment for crypto credit products should be based on how assets are held in custody and how liquidation mechanisms are designed, rather than treating all credit instruments in the sector as if they share the same structure.
crypto creditCeFi lendingDeFi liquidity poolsRWA private credittokenized treasuriesrisk assessmentcompliance

A research report cited by Techub News says major crypto credit segments are built on fundamentally different infrastructure, with clear differences in custody, collateral handling and execution.

The study compares CeFi lending, DeFi liquidity pools, tokenized Treasuries and private credit linked to real-world assets, or RWAs. It says CeFi structures concentrate counterparty risk, while DeFi protocols depend on on-chain smart contracts to execute automatically. According to the report, those underlying design choices directly affect the risk profile and compliance requirements of credit products, and any risk assessment should focus on asset custody and liquidation mechanisms.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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