Crypto Lending Market Hits $25B Milestone as Transparency Becomes the New Standard

Crypto lending just crossed the $25 billion threshold—and the industry's playing by a new rulebook.

From Shadow Banking to Glass Boxes

Remember when 'trust us' was the best due diligence you could get? Those days are over. The market's explosive growth to a $25 billion beast forced a reckoning. Lenders now operate with their cards on the table—real-time audits, verifiable reserves, and clear risk frameworks are no longer premium features. They're the price of admission.

How Transparency Cuts Through the Noise

This shift bypasses the old gatekeepers. Investors can now scrutinize collateral pools and loan-to-value ratios themselves, making informed decisions without waiting for a Moody's rating that arrives three crises late. It turns opaque leverage into a transparent tool. Smart contracts automate compliance, slashing the bureaucratic fat that traditional finance layers on—no more paying a team of lawyers to parse a 200-page prospectus that says 'risky' in fifty different ways.

The New Bottom Line

The $25 billion figure isn't just a size metric; it's a signal. Capital floods where confidence is built, not just promised. While Wall Street still sells products wrapped in complexity fees, crypto lending is building a market where the terms are clear, the risks are visible, and the yields are earned—not engineered by financial alchemy.

Transparency didn't just become the standard; it became the competitive edge. The market voted with its billions, and the message was clear: in the age of digital assets, you either operate in the open or you get left behind.

TLDR

• The crypto lending market has reached $25 billion in outstanding loans by Q3 2024, marking a 200% growth since the beginning of the year.
• Tether holds 60% of the market share, with $14.6 billion in outstanding loans as of September 30, 2024.
• CeFi platforms like Nexo and Galaxy have grown significantly, with each holding billions in outstanding loans.
• The crypto lending market has become more transparent with platforms providing public financial reports and data.
• DeFi lending applications have also experienced significant growth, reaching $41 billion in outstanding loans by the end of Q3 2024.

The crypto lending market has surpassed $25 billion in outstanding loans in Q3 2024, according to Galaxy Research. This marks a 200% increase since the start of the year. Despite the growth, the market has yet to recover to its $37 billion peak in Q1 2022.

Galaxy’s head of research, Alex Thorn, attributes the market’s rebound to the rise of new centralized finance (CeFi) lending platforms. These platforms are more transparent than those dominating the market during the previous cycle. Thorn emphasized that this shift is a significant change from earlier market trends.

the cefi crypto lending league table is out

crypto lenders had an aggregate loan book of nearly $25 billion outstanding at the end of Q3 2025, the highest since the Q1 2022 peak

proud of this chart and the transparency of its contributors. big change from prior market cycles… pic.twitter.com/xOOcM5Q27n

— Alex Thorn (@intangiblecoins) November 30, 2025

New Leaders in CeFi Lending

Tether now holds a dominant position in the crypto lending market. As of September 30, it accounted for $14.6 billion in outstanding loans, representing 60% of the market share. Following Tether, NEXO and Galaxy hold $2 billion and $1.8 billion in loans, respectively.

Transparency is a key factor in the success of these platforms. Tether publishes quarterly attestations, while Galaxy and Coinbase release detailed public financial reports. Nexo has also proactively shared data with Galaxy Research, further solidifying its role in the market.

Alex Thorn expressed pride in the transparency now seen within the crypto lending space. He noted that many previous players, such as Genesis, BlockFi, and Celsius, struggled with transparency and poor risk management. Following the collapse of FTX in late 2022, the market experienced a shift toward healthier practices.

Crypto Lending Market Hits $65.4 Billion

While CeFi lending has seen significant growth, decentralized finance (DeFi) applications have also reached new heights. The total dollar value of outstanding loans on DeFi platforms hit $41 billion by the end of Q3 2024. This represents a 54.8% growth from the previous quarter.

When combined with CeFi loans, the total amount of crypto-collateralized borrows reached $65.4 billion. This marks a new all-time high for the crypto lending market. DeFi’s expansion signals continued diversification within the lending space.

The shift towards more transparent and regulated platforms comes after the tumultuous period in 2022. Following the collapses of high-profile companies, lenders have become more conservative in their approach. The sector has largely moved away from uncollateralized loans, focusing instead on full collateralization standards.

The recent growth in the crypto lending market reflects a healthier landscape. Many platforms have adopted stricter risk controls and transparency measures. These practices have helped attract institutional capital and public listings, further stabilizing the market.