This BTC loan product looks like the first integration of a passkey-based smart wallet in a major CEX.

Next, CEXs will suddenly "list" every DEX-based token using a similar integration.

In the same UI where you buy CEX tokens, you’ll be able to buy any DEX-based token. Exchanges will use DEX liquidity instead of spinning up their own. 

Users will spend from their CEX balance via a “magic spend” feature (no need to transfer balances to an onchain address first), and the purchased token will land in their onchain smart wallet address.
https://x.com/sidrmsh/status/1879905729143873870

defi mullet ; just a question of when, not if