Using Crypto as Collateral Could Be Huge

On August 24, 2026, we hosted the Zach Humphries × DigiByte DigiTalk on X Spaces. I hosted the conversation alongside **Zach Humphries, with [YC from DigiByte Coin](https://x.com/DigiByteCoin) joining as co-host and [AJ from DigiDollar Awareness](https://x.com/DigiAwareness_)** joining us as a guest speaker.

The goal was to introduce Zach and his community to DigiByte, DigiDollar, and the larger vision being built around decentralized financial infrastructure. During the discussion, two exchanges stood out because they captured the core idea behind DigiDollar in a very simple way: crypto does not necessarily have to sit idle, and accessing its value does not always have to begin with selling it.

AJ Asked Zach What Really Caught His Attention

During the Space, AJ from DigiDollar Awareness asked Zach directly:

“What attracted you to DigiByte and DigiDollar? What is it that really caught your attention?”

Zach’s answer went straight to the heart of the concept:

“Honestly, the fact that you’re not just sitting on an asset and just holding something — you can put it to work.”

That answer matters because much of crypto has historically revolved around acquiring an asset, holding it, and waiting for it to appreciate. There is nothing wrong with that approach, especially when someone strongly believes in the long-term value of an asset, but DigiDollar introduces another possibility: the underlying asset can become productive collateral rather than simply remaining untouched in a wallet.

In the DigiDollar model, “putting DGB to work” does not mean earning interest on it. It means voluntarily time-locking DGB so it can serve as verifiable collateral for newly minted DigiDollar. That distinction is important because the value proposition is not about yield; it is about using an asset you already own in a different way.

“Using an Asset as Collateral Could Be Huge”

Later in the discussion, I asked Zach:

“When you hear the idea, ‘Access your crypto value without selling,’ what’s the first question that comes to mind?”

Zach immediately connected the idea to Bitcoin. He explained that one of the common criticisms of Bitcoin is that many holders do not actually want to spend their BTC. He compared his own view of Bitcoin to gold and referenced the famous Bitcoin pizza story, where an asset that seemed spendable at the time became dramatically more valuable years later.

Zach then said something that really stood out:

“I think moving into this world where you’re able to use an asset — whether it’s Bitcoin, DigiByte, or any other altcoin — as collateral, I think it could be huge.”

Taken together, Zach’s two answers tell an important story. First, he said what caught his attention was the ability to put an asset to work rather than simply hold it. Then, when the conversation moved toward collateral, he recognized the potential of using crypto value without necessarily selling the underlying asset.

That is the DigiDollar value proposition in simple terms: put the asset to work, use it as collateral, and potentially access value without automatically selling the asset you believe in.

Accessing Value Without Automatically Selling

Crypto has become very good at giving people digital assets they can own, but the next question is what someone can actually do with those assets. If a person strongly believes in the long-term future of a cryptocurrency but still wants access to some of its value, the traditional answer is usually to sell a portion of it.

Selling solves the immediate liquidity problem, but it also means giving up ownership and future exposure to that portion of the asset. DigiDollar introduces a different approach by allowing DGB holders to voluntarily time-lock their DigiByte as collateral and mint DigiDollar against it.

In simple terms:

DGB → Time-Locked Collateral → DigiDollar → Usable Value

Your DGB becomes the collateral, while DigiDollar becomes the value that can potentially be used elsewhere in the ecosystem.

Edge Wallet is a great option for storing and using DigiByte, and hopefully support for DigiDollar will be added soon. visit www.edge.app

There Is Still Room for Innovation

Zach was also clear that he believes Bitcoin will continue to be perfectly fine, and that point is important because this does not need to become a Bitcoin-versus-DigiByte conversation. Bitcoin can continue serving its role as a decentralized digital asset while other networks explore different forms of utility and financial innovation.

As Zach pointed out, there is still room for innovation, and one area where that innovation may develop is in the use of digital assets as decentralized collateral. For DigiByte, DigiDollar expands the role of DGB beyond simply being mined, held, transferred, or spent. It can also become on-chain collateral inside a system where the collateralization process can be independently verified.

That is where the larger idea begins to emerge. DigiByte is not simply competing to be another cryptocurrency used for payments. With DigiDollar, it is beginning to develop additional financial functionality that could become part of a broader parallel financial system built around self-custody, decentralized collateral, and on-chain verification.

Zach Wants to Continue the Conversation

Another important signal came near the end of the Space when Zach expressed interest in continuing the conversation with members of the DigiByte team and bringing that discussion further into his own community. He also recognized the potential importance of a decentralized stablecoin for decentralized crypto communities.

That point deserves attention because decentralized communities ultimately need more than decentralized assets. If the goal is to build financial systems that are less dependent on centralized intermediaries, then those communities also need tools for stable value, collateral, self-custody, payments, liquidity, and on-chain verification.

DigiDollar is attempting to address part of that need directly through the DigiByte blockchain. It is still early, and significant work remains around liquidity, wallet integrations, exchange support, merchant adoption, and broader infrastructure, but the concept itself is now live and beginning to reach people outside the immediate DigiByte community.

When someone comes into the conversation, hears the technology explained, says that putting an asset to work is what caught his attention, sees the potential of collateral, and then wants to continue that discussion with his own audience, that is a meaningful signal.

The Conversation Is Just Beginning

What I appreciated most about the DigiTalk was that everyone brought a different perspective. YC brought the DigiByte community perspective, AJ helped focus the conversation on what specifically attracted Zach to DigiByte and DigiDollar, and Zach approached the discussion with genuine curiosity rather than treating it as another speculative crypto conversation.

The result was a discussion about utility, collateral, self-custody, decentralization, and what crypto could potentially become when an asset does more than simply sit in a wallet.

DigiDollar is still early, and its long-term success will depend on adoption, liquidity, infrastructure, integrations, and continued community participation. But the conversation itself is evolving, and when someone hears the idea and says, “You can put it to work,” and later adds that using crypto as collateral “could be huge,” that is worth paying attention to.

Listen to the Full X Spaces

If you want to hear AJ’s question, Zach’s answers, and the entire discussion firsthand, you can listen to the complete **Zach Humphries × DigiByte DigiTalk** here:

**https://x.com/i/spaces/1nxnRBoZVWmxO?s=20**

Listen to the conversation in full context, do your own research, and decide for yourself what you think about DigiByte, DigiDollar, and the potential of decentralized collateral.

**Written by Adam Ogilvie**

This article is for educational and informational purposes only and is not financial advice. Cryptocurrency involves substantial risk. Always conduct your own research and fully understand any time-lock or collateral commitment before participating.