INSIGHT: Diego Gutierrez Zaldivar (@dieguito), of @rootstock_io: "If it's only store of value, the utility of Bitcoin is limited. But if you can use Bitcoin as collateral for lending... you can unleash the full power of the asset." Filmed on location at the @xapobankapp summit

What happened

At the Xapo Bank summit, Diego Gutierrez Zaldivar of Rootstock said Bitcoin only works as a store of value, but using it as collateral – an asset pledged to secure a loan – could unlock its full power.

Confirmed

Global impact / market context

If Bitcoin can be pledged as collateral for loans, investors can earn returns on the same coins they hold, increasing demand for the asset and potentially raising its price and market depth.

Analyst inference

Most Bitcoin owners currently treat it like digital gold, limiting everyday use. Allowing loans backed by Bitcoin mirrors other crypto services where assets are reused to generate income, which could broaden Bitcoin’s financial role.

Analyst inference

What to watch

1. Watch for major loan providers launching Bitcoin‑backed products, because the speed and terms of these offerings will show how quickly the collateral use case spreads among investors. Analyst inference
2. Watch for official guidance on using Bitcoin as loan collateral, since clear rules from regulators can encourage banks and fintech firms to accept the cryptocurrency for borrowing. Analyst inference
3. Watch Bitcoin’s price and trading volume after collateral‑based lending grows, because more borrowing could lift demand but also add price swings for holders. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• x.com