Wiktionary
collateralize
vb. 1 To secure a loan by using collateral. 2 To pledge assets as collateral.
WordNet
collateralize
v. pledge as a collateral; "The loan was collateralized by government bonds"
Usage examples of "collateralize".
But the money would in fact be used to collateralize a loan from a Roman bank to a bank in Panama and then shipped on to the Bolivian government.