XPAY KNOWLEDGE

Industry WIKI

Digital assets and currencies

Understand assets, networks and trading mechanics with sources you can check.

Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as a lender's protection against a borrower's default and so can be used to offset the loan if the borrower fails to pay the principal and interest satisfactorily under the terms of the lending agreement.