Crypto Long & Short: Why real-world assets need fixed-rate loans onchain

October 21, 2026 Peter Gaffney

Summary

Real-world assets currently back major stablecoins, but borrowing against these assets relies entirely on variable-rate pools. Introducing fixed-rate and fixed-term lending could significantly increase real-world asset demand. For example, a minor reallocation of reserves by Sky and Ethena might generate billions in new demand.

Real-world assets already back the largest stablecoins, yet borrowing against them onchain still runs through variable-rate pools. Peter Gaffney of O2O Capital Partners explains why fixed-rate, fixed-term lending is the missing piece, and how a 5% shift in Sky and Ethena reserves could create $1.8 billion of demand for real-world assets.

Source: Read the full story at CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

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