Cryptocurrencies as a Guarantee: Complete Guide to DeFi Securities

What Is Collateral in Crypto and Why Is It Up?

The use of cryptocurrencies as collateral to obtain loans or access liquidity is one of the fundamental pillars of decentralized finance (DeFi).Commodity Futures Trading Commission (CFTC)The United States, which issued a document clarifying its expectations for a pilot program that allows the use of crypto assets as collateral in certain regulated markets. This moves signals an important step in the integration between the crypto world and the traditional financial system, opening precedents that can influence global regulators, including in Brazil.

Meanwhile, the market is facing a period of adjustment.Algorand, Gemini and Crypto.comIn this context, efficient mechanisms to use digital assets without having to sell them – such as collateral loans – become valuable strategic tools for both long-term holders and traders seeking turnover capital.

How Securities Work in Practice: DeFi vs. DeFi TradFi

In the traditional financial system (TradFi), you offer a property (such as a property or a car) as a guarantee for a loan.Smart contractsBlockchains such as Ethereum, Solana or BNB Chain.

• Deposit of Guarantee:The user blocks (makes "lock") a quantity of cryptocurrencies (e.g. ETH, BTC) in a smart contract from a lending platform such as Aave, Compound or MakerDAO.
• The collateral ratio:For example, to borrow $10,000 in stablecoins, you may need to deposit $15,000 in Ethereum (a ratio of 150%). This protects the platform against the volatility of the collateralized asset.
• The liquidation:If the value of your guarantee falls too much (lowering the collateral ratio below the minimum), the smart contract can automatically sell part of it to pay off the loan and protect the system.

Regulation and Risks in Focus: What the CFTC and the Kalshi Case Teach Us

The recent clarification ofCFTCOn the use of crypto as collateral in regulated markets is a crucial development. It sets parameters for custody, risk assessment and transparency, seeking to bring legal certainty to financial institutions who want to operate in that space. For the Brazilian market, this serves as aImportant thermometerhow large economies are structuring governance for these new financial instruments.

The platform for forecastingKalshi, which had his contracts on sports and electoral events temporarily blocked by a judge in Nevada, illustrates the other side of the coin: aRegulatory UncertaintyAlthough it is not directly about DeFi collateral, the episode reinforces that innovative financial products that use crypto or blockchain often fail into issues of jurisdiction and legal framework. For the Brazilian user, this highlights the importance of using platforms with solid foundations, operational transparency and, where possible, dialogue with authorities.

Main Risks of Using Crypto as Guarantee

• Volatility of the market:A sudden drop in the price of the collateralized asset is the number one risk, which can trigger automatic settlements and losses.
• Smart Contract RiskVulnerabilities or bugs in the DeFi platform code can be exploited, resulting in loss of funds.
• The regulatory risk:Changes in legislation, such as those discussed in Germany on crypto asset taxation (mentioned in the news of the week), may impact the feasibility and costs of these operations.
• Risk of liquidity:In times of extreme tension in the market, it can be difficult to re-establish the guarantee or pay off the loan to avoid settlement.

Opportunities and Scenarios for Brazil

In Brazil, the use of cryptocurrencies as collateral is still a field in development, but with great potential. The growing adoption of cryptocurrencies by individual investors and the maturity of the fintech ecosystem create a fertile ground.Guaranteed Loans in BitcoinThis is an alternative to traditional banking loans.

In addition, regulatory clarifications that are taking place internationally, such as those of the CFTC, can serve as the basis for theThe Securities Commission (CVM)and OCentral Bank of BrazilThe trend is that over time, structured products that use crypto as collateral become more common and affordable, integrating into diversified investment portfolios.

For the investor, understanding this mechanism is key to strategies for“HODL” without capital immobilizationInstead of selling your cryptocurrencies at times of cash need, it is possible to use them as collateral to obtain liquidity in stablecoins or real while gaining exposure to the potential valuation of the original asset.