All termsDeFi and RWA IntegrationWorth knowing
Collateral Management
Collateral management is the process of monitoring, valuing and administering assets used to support financial obligations. It can include checking collateral values, eligibility, required coverage and what happens when agreed thresholds are breached.
Why it matters to you
Using RWAs as collateral introduces challenges that may not exist with continuously traded cryptoassets. Some real world assets are valued less frequently, trade less often or require legal processes before they can be transferred or sold. That makes effective collateral management particularly important.
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