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Ledn Shifts to Bitcoin-Only, Fully Custodied Loan Model
Summary: Ledn, a long-standing digital asset lender, announced a significant platform update Thursday, stating it will no longer lend out client assets to generate interest. This move aims to eliminate third-party lending credit risk for its users. Effective July 1, 2025, Ledn will exclusively offer a "Custodied Bitcoin loan structure," ensuring client Bitcoin collateral remains fully ...
Ledn, a long-standing digital asset lender, announced a significant platform update Thursday, stating it will no longer lend out client assets to generate interest. This move aims to eliminate third-party lending credit risk for its users.
Effective July 1, 2025, Ledn will exclusively offer a "Custodied Bitcoin loan structure," ensuring client Bitcoin collateral remains fully in custody with either Ledn or its funding partners. As part of this strategic pivot, the company will also discontinue support for Ethereum (ETH), focusing solely on Bitcoin.
Adam Reeds, Ledn's co-founder and CEO, explained the change as a return to Bitcoin's founding principles, contrasting it with risky, opaque lending models that contributed to the 2022 market collapse. Ledn, which has originated over $9.5 billion in loans and was among the first to introduce proof-of-reserves in 2020, views this shift as enhancing client security and aligning with regulatory signals for more resilient digital asset systems.
