Reuse by an intermediary of collateral posted by a client, creating additional claims and interconnected risk.
Rehypothecation is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Rehypothecation belongs to the documented history and social layer around Bitcoin. Primary records can establish what was published, built or decided; motives, influence and later interpretation should remain separate from those verifiable facts.
Understanding Rehypothecation helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with Collateral, Counterparty risk, Crypto prime brokerage, Asset segregation. The reverse links also lead from Asset segregation, Crypto prime brokerage, Collateral, Counterparty risk.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph