Crypto Lending Is Becoming Another Exchange Revenue Stream

Crypto exchanges are no longer focused only on buying and selling digital assets. Lending products are becoming another way platforms can generate activity by allowing users to borrow against their crypto holdings or potentially earn returns by supplying assets for lending. For borrowers, this can provide access to liquidity without immediately selling their crypto. But lending also introduces risks involving collateral values, liquidation, counterparty exposure and the platform itself. The collapse of several crypto lending businesses in previous market cycles showed how quickly these risks can become serious. As exchanges expand into lending, should users treat these products more like traditional loans or as a completely different category of financial service?