According to CoinMeta, Arch Lending Chief Technology Officer Himanshu Sahay stated that Bitcoin-backed loans require qualified custody, zero re-pledge, and clear collateral rules to reduce risks. He pointed out that wealthy Bitcoin holders are increasingly using loans to meet their cash needs while maintaining exposure to their assets. Sahay also mentioned that loans can provide liquidity for investors who hold Bitcoin over the long term without having to sell their holdings. Recent reports indicate that demand for Bitcoin-backed credit has recovered as investors seek liquidity without selling their Bitcoin holdings.