'collateralize' originates from the word 'collateral,' which comes from Medieval Latin 'collateralis,' where 'com-' meant 'together' and 'lateralis' meant 'side.'

'collateralis' transformed into the Old French word 'collateral,' and eventually became the modern English word 'collateralize.'

Initially, it meant 'to place side by side,' but over time it evolved into its current financial meaning of 'to secure a loan with collateral.'