Vietnam Proposes Allowing SMEs to Use Digital Assets as Loan Collateral

Vietnam’s Ministry of Finance has proposed expanding the types of collateral SMEs can pledge. Under a draft revised Law on Support for SMEs—currently open for public consultation—SMEs could use digital assets and virtual assets, along with intellectual property and other intangible assets, to secure bank loans. The policy targets a persistent credit gap. SMEs and household businesses make up over 98% of Vietnamese enterprises, but their loans are only about 20% of total banking credit, largely due to limited eligible collateral, weak financial transparency, and small capital bases. Crucially for credit risk, the draft urges banks to assess borrowers using broader criteria such as credit ratings, business plans, cash flows and market expansion potential—not just fixed assets. However, banks are not required to accept every digital asset, and assets must be lawful under Vietnamese regulations, leaving valuation, custody, and risk-control as likely implementation hurdles. For crypto traders, the near-term market impact should be limited because this is still a proposal. Still, it strengthens the onshore legal pathway for digital assets as loan collateral, which could gradually improve demand and liquidity if the framework is finalized.