The asset class gets bigger, more liquidity so less vol, so people don't need to have have so much spare collateral in case it rips down like 50%, specialised institutions that focus on a use case, home loans, car loans etc.

the more options, the more we can figure out a market rate for loans in each sector, IE 3% for homes, %5 for cars etc 10% for short term loan and also from a tech stand point escrow services that can support on-chain, lightning etc