Dictionary

overcollateralize en · VERB

Etymology

From over- + collateralize.

Meanings

1. (transitive) To collateralize for too large an amount.
   • The New York Department of Financial Services (NYDFS) is expected to approve Ripple Labs’ RLUSD stablecoin — an overcollateralized dollar-pegged stablecoin — in the coming days, sources revealed to Fox Business. 2024 November 29, Vince Quill, “New York regulator set to approve Ripple’s RLUSD stablecoin: Report”, in Cointelegraph:
   • Companies seeking to raise capital through bond offerings may often be required to overcollateralize the bonds by pledging assets that surpass the bond’s face value. 2024 January 28, Michael Taylor, “What Is Overcollateralized and How Does It Work?”, in Shifting Shares:

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overcollateralization