> For the complete documentation index, see [llms.txt](https://docs.ethena.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethena.fi/backing-assets/institutional-lending.md). # Institutional Lending The protocol also extends overcollateralised loans of stable assets to institutional counterparties through direct lending agreements and triparty collateralised arrangements. Ethena already lends stablecoins from the backing of USDe into DeFi markets such as Aave and Morpho. This represents a natural extension of that existing activity - overcollateralised lending with only high-quality, immediately liquid collateral (BTC/ETH) and facing institutional counterparties that meet strict eligibility criteria. The CeFi lending market has undergone a structural reset since the credit crisis of 2022–23, where failures of undercollateralised lenders like Genesis, Celsius, and BlockFi eroded trust across the industry. Since then, the market has recovered on a fundamentally different footing: overcollateralised, transparent, and with rigorous counterparty standards. Crypto-collateralised lending reached an all-time high in Q4 2025, with the composition of that leverage structurally healthier than during the previous cycle. Overcollateralised credit and transparent reporting have become the norm. Ethena’s direct lending activity will sit firmly within this reformed landscape - facing only institutional counterparties, overcollateralised with high-quality liquid collateral, and subject to the independent oversight of the Risk Committee. Under these arrangements, an institutional borrower receives a loan of stable assets and posts collateral worth more than the value borrowed. The collateral is held under arrangements designed to protect the protocol's claim - including the use of qualified custodians and triparty structures in which an independent agent holds and administers the collateral. Ethena is establishing lending relationships with institutional-grade counterparties subject to the relevant agreements and Risk Committee approval. Institutional lending captures borrowing demand from a set of counterparties whose activity is largely independent of crypto-native funding cycles, further diversifying the protocol's revenue base. Counterparty eligibility, collateral requirements, overcollateralisation ratios, and aggregate exposure limits are set subject to governance and Risk Committee review. [Link to Maple & Anchorage Digital analysis](https://gov.ethenafoundation.com/t/proposal-maple-and-anchorage-digital-as-direct-lending-partners/756) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.ethena.fi/backing-assets/institutional-lending.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.