Designing BTC Credit Markets
Alpen Labs outlines how BTC-backed credit can scale into onchain markets using Morpho V2 and standardized loan claims, highlighting BitVM-enabled bridges as key infrastructure for trust-minimized BTC collateral in scalable DeFi credit systems.
alpenlabs.io/blog
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Size Matters: The Architecture of BTC Credit Markets
What's missing are expressive onchain loan markets and standardized, financeable claims. In mature systems, loans do not stop at origination. They trade, they get financed, and capital recycles. That recycling compresses rates and deepens liquidity. BTC-backed loans today largely end at origination.