Non-custodial lending, also known as DeFi lending or Decentral Finance lending, has 20% of the crypto lending market. DeFi focus is on the Ethereum blockchain-based assets. The key in DeFi is that the users control here their keys. The platform does not have access to the user’s private keys and the user’s assets. That’s where the term non-custodial is coming from.
Users can borrow crypto or stablecoins. Borrowing fiat is not possible in DeFi lending.
The opposite of non-custodial lending is Custodial lending. In this case, the user does not control his assets, but the lending platform has the users’ private keys. In our view, this defeats the purpose of the crypto assets, where the users should control their blockchain-based assets