The only place you can borrow cheaper than Fed Funds is bitcoin. Fed Funds trade for about 2.38% though the bond market is indicating rates could plunge to 1.75% this year. That’s cheap money. But nothing beats free. And you can borrow against btc for zero if you’re an accredited investor & eligible-contract participant & you hold the number 1 digital asset in the world.
This is done by laying off price & credit risk in options markets. But let’s take a step back: everyone in finance wants to borrow cheap to build assets & grow their return. So if you can borrow at nothing & make more than nada you’re running all of a sudden a profitable endeavor.
The way this works is you buy a put to protect the downside. The lender who loans you the cash is secured by a third-party custodian holding your asset as collateral; and the source of the loan capital is also protected by the put. To buy the interest rate down you would sell an appropriate call to finance the trade. There’s a risk of forfeiting the coin if the market explodes higher but this is the trade off being made. The borrower gets free cash and participates in the price appreciation up to a knockout price.
Central banks make the world go round by managing low rates to spur investment. In bitcoin, there is now a stable competitor.