overcollateralize

verb

To collateralize for too large an amount.

Scrabble 31
Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

verbovercollateralize (third-person singular simple present overcollateralizes, present participle overcollateralizing, simple past and past participle overcollateralized)

present singular third person overcollateralizes · participle present overcollateralizing · participle past overcollateralized · past overcollateralized

  1. transitiveTo collateralize for too large an amount.

    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
    1 more example

    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

Origin

From over- + collateralize.

Full word history & related roots →
Cite this entry
APA

overcollateralize. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/overcollateralize

MLA

“overcollateralize.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/overcollateralize. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “overcollateralize,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/overcollateralize.

Source: overcollateralize on Wiktionary, CC BY-SA 4.0.