Building a Financial Framework for Bitcoin: Full-Reserve Lending, Hold-to-Maturity, and On-Chain

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Building a Stable Financial Framework for Bitcoin: Full-Reserve Lending, Hold-to-Maturity, and On-Chain Transparency

1. Introduction

As Bitcoin continues to evolve from a speculative asset to a recognized financial instrument, the potential for it to serve as an alternative reserve asset becomes clearer. However, to solidify Bitcoin’s role in global finance, particularly as a trusted collateral asset, a robust framework must address Bitcoin’s volatility and uphold transparency. By applying concepts from traditional finance—namely, full-reserve lending, hold-to-maturity (HTM) practices, and on-chain transparency—we can construct a stable financial architecture that leverages Bitcoin’s strengths while mitigating its inherent risks. This exposition explores how such a framework could establish Bitcoin as a viable, long-term reserve asset for lending markets.