Rehypothecation Cascades in Crypto Lending: Mapping Counterparty Chains
Introduction: Why Rehypothecation Matters in Crypto Lending
Rehypothecation—the practice of re-using collateral pledged by one borrower to secure another loan—has existed for decades in traditional finance. In the fast-moving world of crypto lending, however, its scale, speed, and opacity can multiply systemic risk. When the same bitcoin, ether,