Bitcoin-backed digital credit market grows to $16B, could rival Bitcoin's $1.5T value, says Dan Hillery.

The market for Bitcoin-backed digital credit has grown to $16 billion, according to Dan Hillery, as reported by Pluang. Hillery said the sector could eventually rival Bitcoin’s stated $1.5 trillion value, framing Bitcoin-backed credit as a potentially significant layer of activity around the asset.

Bitcoin-backed credit generally involves using bitcoin as collateral for loans or other forms of on-chain and digital financing. The model can allow holders to seek liquidity without selling their bitcoin, while lenders or protocols typically manage collateral requirements and liquidation risks.

The comparison highlights a broader argument that Bitcoin’s role may extend beyond trading and long-term holding. A larger credit market built around bitcoin collateral could deepen its use in lending and financial services, though the size and development of that market remain central to Hillery’s outlook.

Bitcoin remains the largest and best-known cryptocurrency, and its market value is often used as a benchmark for the wider digital-asset sector. Hillery’s assessment places the $16 billion Bitcoin-backed digital credit market against that much larger benchmark.