"Crypto-collateralized" refers to a financial arrangement where cryptocurrencies are used as collateral to secure loans or other financial transactions. In this setup, borrowers deposit a certain amount of cryptocurrency, such as Bitcoin or Ethereum, to back their loan. This collateral helps protect lenders against the risk of default, as they can seize the collateral if the borrower fails to repay. This method is commonly used in decentralized finance (DeFi) platforms, allowing users to access liquidity without selling their crypto assets. By using crypto as collateral, individuals can leverage their holdings while still maintaining ownership, enabling them to participate in various financial activities.