The evolution of crypto is baked into the DNA of blockchain itself, and today, just buying and selling tokens feels outdated and, frankly, a little boring. One exciting development capturing attention is the rise of crypto-backed loans, a financial innovation that lets users leverage their crypto holdings to access liquidity without having to sell them. Crypto loans work similarly to traditional secured loans. Instead of putting up a house or car as collateral, users pledge digital assets like Bitcoin (BTC) or Ethereum (ETH) to borrow fiat currencies such as USD
source: https://beincrypto.com/figure-security-flexibility-first/