TLDR
- Crypto lending rose over 200% in 2024, reaching $25B in Q3, the highest level since Q1 2022.
- Tether holds 60% of the CeFi loan market with $14.6B in outstanding loans as of Sept. 30.
- Galaxy and Nexo follow with $1.8B and $2B in loans, using public or voluntarily shared data.
- Combined CeFi and DeFi loans hit $65.4B in Q3, the highest ever, per Galaxy Research.
After years of volatility and high-profile collapses, the crypto lending market is showing signs of strong recovery and renewed trust. Reaching $25 billion in Q3 2025, the market is now led by more transparent centralized players like Tether, Nexo, and Galaxy. With tighter risk controls, full collateralization, and public disclosures, these firms are reshaping the landscape and attracting institutional interest back into the once-troubled lending space.
Centralized Lending Recovers After a Turbulent Phase
The centralized crypto lending market reached $25 billion in Q3 2025, the highest since early 2022, according to Galaxy Research. This represents a growth of over 200% since the start of 2024. The lending market, which had previously been dominated by firms exposed to FTX and Three Arrows Capital, is now led by platforms promoting higher transparency.
Galaxy’s Head of Research, Alex Thorn, shared the updated data on Nov. 30, noting the market’s structural shift. “It’s a big change from prior market cycles,” Thorn stated. He credited the shift to the exit of opaque firms and the emergence of more disclosure-focused platforms.
In the previous cycle, firms like Celsius, Voyager, BlockFi, and Genesis had dominated but later filed for bankruptcy due to exposure to failed institutions like FTX. The collapse of FTX in November 2022 forced the market to reassess risk practices and transparency.
Tether Leads a New Wave of Lenders
Tether, the stablecoin issuer, now controls the largest share of the centralized lending market. As of September 30, Tether held $14.6 billion in active loans, accounting for 60% of the total market. Galaxy Research confirmed that this data is supported by Tether’s quarterly attestations.
Following Tether, Nexo and Galaxy have also emerged as major players. Nexo holds about $2 billion in loans, while Galaxy reports $1.8 billion. Both firms are noted for their increased transparency. Galaxy releases data through its public financial reports, and Nexo voluntarily shares its data with Galaxy Research.
Thorn pointed out that the current market is more focused on accountability. Surviving platforms now prioritize full collateralization and stricter risk controls. Most have phased out uncollateralized lending, which was a common cause of defaults in earlier market phases.
CeFi Platforms Shift to Safer Lending Practices
After the failures of earlier centralized lenders, the current market is defined by more conservative strategies. Many firms are working toward institutional investment or public listings, which require them to adhere to stricter standards.
This transformation has introduced new expectations in the space. Platforms now publish regular reports or offer financial transparency through third-party audits. This level of openness marks a shift from the opacity that defined many of the collapsed firms from 2022.
Publicly listed companies like Galaxy and Coinbase contribute to industry transparency through audited financial statements. Other lenders, such as Nexo, provide regular updates voluntarily to research firms like Galaxy.
DeFi Lending Grows Alongside Centralized Platforms
While centralized finance (CeFi) has seen recovery, decentralized finance (DeFi) continues to grow. According to Galaxy’s October report, outstanding DeFi loans reached $41 billion in Q3 2025. This marked a 54.8% increase quarter-over-quarter and a new high for DeFi platforms.
Combining DeFi with CeFi, the total crypto-collateralized lending market reached $65.4 billion in Q3. This is the highest figure ever reported in the sector, reflecting renewed interest in both transparent centralized players and trust-minimized decentralized systems.
Although DeFi and CeFi serve different user bases, their parallel growth shows the demand for digital asset lending continues to expand. Transparency and safer lending terms have become central to both sectors, especially as institutional interest returns to the market.
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