European central banks are reportedly pushing to extend the scope of the stablecoin yield ban to crypto lending and staking, further tightening EU stablecoin regulation in a move that could significantly affect crypto finance businesses operating in the EU.
Institutional Crypto Lending Trends Toward TradFi At Consensus 2026 in Miami, executives from Two Prime, Ledn, and Lygos Finance said institutional borrowers increasingly prioritize custody, transparency, and standardized lending structures over complex DeFi products, following the crypto credit collapses of 2022. The trend suggests the crypto lending industry is gradually aligning with traditional finance, with institutional clients favoring compliance and risk management over decentralized innovation. Source: CoinDesk