okay but *everyone* keeps a copy of the 3 xpubs, you and the lender, and it can be copied infinitely and if it is leaked there is no risk except transaction privacy… so, basically misinfo

I also don't see the point of this. Having only one of the three keys still leaves you powerless without the permission of whoever holds the others. Am I missing something?

If it's being rehypothicated, multisig will not work. I have used Hodl Hodl in the past before I realized stablecoins were a shitcoin. This is more like agorism and it has Lindy. I could see using something like that under very specific circumstances, but it's not marketed like that so it's not humble enough for me.

I think perhaps a more secure way of lending would be with a 1 of 2 multisig walletb(borrower and lender each holding a key) with each party signing a commitment transaction for the term of the loan. The borrower is then timelocked from the bitcoin until the end of the loan term, but the lender can spend the bitcoin at any time. Then, the borrower has some guarantees that if the lender goes belly up during the loan period, then can retrieve their bitcoin after the timelock is up. But the lender has guarantees of the collateral value during the life of the loan. This is similar to how the lightning network HTLCs work. Just a thought. Not sure how that'd work in the legal world though. Usually a company that goes belly up sells off their assets, of which the loans still need to be paid back. But still probably better than traditional multisig. Time locks are great for inheritance though!