Collateral Definition
Collateral is an asset or property pledged by a borrower to a lender as security for a loan, which the lender can seize and sell to recover losses if the borrow
Collateral is an asset or property pledged by a borrower to a lender as security for a loan, which the lender can seize and sell to recover losses if the borrower defaults, fundamentally mitigating credit risk in financial transactions like repurchase agreements (repos) and the emerging field of tokenized real-world asset (RWA) lending.