Crypto-backed lending activity accelerated sharply in 2026, with retail borrowers increasing their average loan frequency by 74%, according to research from CryptoQuant using data from lending platform CoinRabbit.
Retail users averaged 53.5 loans per borrower in 2026, up from 30.8 in 2025. High-net-worth borrowers also increased their activity, though at a more modest pace, with average loans rising 18% from 16.5 to 19.4. The share of users taking multiple loans across CoinRabbit grew from 61.9% to 65.1% during the same period.
Collateral Mix Shifts Significantly
The composition of pledged collateral changed notably alongside borrowing patterns. Among high-net-worth borrowers, Bitcoin's share of collateral fell sharply from 57.8% to 30.5%. Zcash emerged as a major collateral asset, reaching 24.2% after not appearing in the top 10 previously. CryptoQuant attributed part of this shift to Zcash's price movement from roughly $50 in late 2025 toward $800. Monero, Chainlink, and Cardano also captured larger collateral shares.
Retail borrowers maintained heavy use of XRP as collateral, though its share declined from 41.7% to 35.2%. Bitcoin remained the second-most-used collateral asset for retail users, with TRON, Stellar, BNB, Kaspa, and Velo also appearing in the retail collateral mix.
BlackRock Lowers IBIT Conversion Threshold
In a separate development affecting larger Bitcoin holders, BlackRock reduced the minimum threshold for converting Bitcoin directly into shares of its iShares Bitcoin Trust ETF (IBIT) to $1 million in July, down from the previous $25 million minimum. This represents a 96% reduction in the entry requirement.
According to Robbie Mitchnick, BlackRock's head of digital assets, the fund has processed more than $5 billion in Bitcoin conversions. Mitchnick noted that security concerns, including kidnappings and custody failures, have motivated some holders to move Bitcoin into the regulated fund structure. IBIT currently holds approximately 3.645% of Bitcoin's total supply with net assets of $60.65 billion.
Bitwise also lowered its conversion minimum from $100 million to $3 million during the same period.
