A private-bank facility is built around relationship context: portfolio composition, jurisdiction, account history, and the broader wealth mandate. On-chain lending is built around programmatic collateral rules. Both can be efficient, but their strengths are different.
Private banks optimise for relationship value.
Listed securities portfolios may support flexible credit at institutional benchmarks plus a spread. The tradeoff is onboarding time, documentation, and eligibility rules that can change with portfolio risk.
On-chain markets optimise for execution.
Protocol liquidity can be immediate and transparent. Rates and liquidation thresholds are visible, but borrowers accept smart-contract risk, oracle risk, and automated liquidation logic.
The best answer may be a mix: stable, lower-friction portfolio credit for planned liquidity, and crypto-native borrowing for shorter tactical needs.