the bitcoin sits in an address with us + the partner. is it not clear you are giving up custody to get a loan? there is no such thing, otherwise. that’s what a collateralized loan is, right?

of course we know we are giving up custody to take a loan. we aren’t that retarded. but where and how the collateral is held is an important risk factor. and without the verifying status of funds on chain, it’s a trust me bro situation