The digital asset lending market has matured beyond its speculative roots, with institutional demand driving growth in secured BTC and ETH-backed loans. Two Prime Lending has issued over $1.25B in bitcoin-backed loans, offering relationship-based CeFi solutions backed by deep risk management and regulatory compliance. As firms weigh tradeoffs between centralized finance (CeFi) and decentralized finance (DeFi), key considerations include rehypothecation risk, custody, counterparty transparency, and margin terms. While DeFi promises speed and higher yield, it introduces new risks in collateral management, smart contracts, and compliance. Institutional lenders are increasingly turning to hybrid models to balance yield generation, capital efficiency, and trust.