Securing Non-traditional Assets: A Focus on Bitcoin

Abstract

In recent years, Bitcoin has moved beyond the status of a speculative asset. It is increasingly being adopted by governments, financial institutions, and pension funds worldwide. This growing institutional interest highlights Bitcoin's potential as a legitimate asset class and financial tool, suggesting that it is not merely a speculative "mania" but rather a groundbreaking asset with a role in modern financial transactions. However, despite its rising acceptance, taking security over Bitcoin presents unique challenges for holders and lenders. In this first article in our series, "Securing Non-Traditional Assets," we delve into these challenges, exploring the issues that both parties face when using Bitcoin as security to acquire other assets or secure loans.