The typical timeline for digital assets is first owning the asset, then earning yield on it, and eventually participating in DeFi initiatives such as lending
@NateHoliday, co-founder of
@SpaceandTime, said this progression was the impetus behind Virtual Vaults, which lets institutions borrow against tokens that are already being put to work onchain
"These digital assets are valuable, and there's a whole lending infrastructure in the world where people with assets should be able to go get loans and be able to lend their assets"
"You can't over-collateralize a loan, you can't give all the tokens to a lender that just sit there and they hold it"