So, you hold Lightning in escrow to a cashu mint. The mint distributes (in a loan) those cashu tokens against the locked up lightning funds. This allows fully collateralized loans without having to confirm it on chain.

Think of it this way:

>Anything you can do with gold, you can do with Bitcoin.

>Anything you can do with cash, (pre-1971) you can do with lightning.

>Anything you can do with credit, you can do with Cashu.

Credit is a loan instrument by its nature.