Vietnam's Ministry of Finance has proposed letting small and medium-sized enterprises use digital assets, virtual assets and intellectual property as collateral for bank loans. The measure is part of a draft revised Law on Support for SMEs currently open for public consultation. If adopted, Vietnam would become one of the first Asian markets to officially recognize crypto assets as accepted bank collateral.
The initiative addresses a structural gap the country's financial sector has failed to close for years: small businesses make up the backbone of the economy but can rarely access bank credit because they lack physical property to pledge.
98% of Businesses, 20% of Bank Credit
SMEs and household businesses account for over 98% of all enterprises in Vietnam. Yet they receive only about 20% of total bank credit in the economy. Nine out of ten companies effectively stand outside the formal lending system.
The Ministry of Finance traced the gap to structural constraints. Banks have historically lent against land and real estate. Startups and technology firms with patents, software and crypto reserves but no physical assets were locked out. The new draft attempts to close that gap.
What the Ministry Proposes: A Broader Collateral List
The draft expands the list of acceptable collateral. Banks would be able to accept future-formed assets, property rights, intangible assets, and digital or virtual assets. The document also pushes credit institutions to extend lending based on credit ratings, business plans, cash flows and market potential.
A separate section targets green businesses: priority access to credit guarantees, concessional financing and interest-rate support for circular economy and energy efficiency projects. Tax incentives and ESG compliance support for startups are also included.
Fourth in the Global Crypto Adoption Index
The proposal has clear context. Chainalysis ranked Vietnam fourth globally in its 2025 Global Crypto Adoption Index, behind India, the United States and Pakistan. The country has long been a major P2P stablecoin market in Asia, where USDT serves as a dollar alternative in everyday micro-transactions.
A regulatory gap has kept businesses from fully using these assets. The Ministry now aims to convert a de-facto reality into an official financial tool: if a company holds crypto or tokens on its balance sheet, it could pledge them to a bank.
Techcombank, VPBank and LPBank in the License Race
The collateral bill emerged alongside another regulatory push. In March 2026, Vietnam opened a licensing pathway for domestic crypto trading platforms. Five companies have already passed an initial qualification round, including affiliates of Techcombank, VPBank and LPBank.
Deputy Finance Minister Nguyen Duc Chi said at the Digital Trust in Finance 2026 forum that the first regulated crypto trading activity could launch as early as Q3 2026. If the bank affiliates also gain approval to accept crypto as collateral, Vietnam would have a full two-sided infrastructure: legal exchange plus crypto-backed bank lending.
Risks: Valuation, Volatility and Regulatory Gaps
The bill's biggest open question is how banks will value crypto assets held as collateral. Volatility, the lack of standardized valuation methods, and the risk of sharp price drops during loan terms create new challenges for lenders.
- Valuation uncertainty: no accepted framework exists for banks to price crypto collateral.
- Volatility: Bitcoin fell more than 30% from its peak twice in 2024-2025, which could have wiped collateral value in weeks.
- Forced liquidations of large positions carry market-impact risks.
- Without international standards, local regulators must build discount coefficients from scratch.
Other jurisdictions have tackled similar questions. The EU's EBA issued guidance on crypto-asset accounting in 2024. Vietnam's Ministry has not yet published details on discount coefficients or caps on the crypto share in a bank's collateral portfolio.
Regional Precedent or Paper Policy?
Vietnam's move fits a broader pattern across underbanked economies looking to expand credit access through non-standard assets. Pakistan, ranked third in the same Chainalysis index, has also announced crypto legalization plans for 2026. India, the top country in the index, introduced a 30% crypto profit tax back in 2022 but has not put banking collateral on the agenda.
If Vietnam gets the mechanism running before year-end and banks start lending against Bitcoin and stablecoins, it would mark the first large-scale precedent in the region. The bill remains open for comment and implementation details are still undefined. The final law's approach to collateral valuation will determine whether the new rule becomes a practical tool or stays a declaration.
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