Ledn's Crypto Lending Service: Low-Risk Custodied Loans Unveiled

• Crypto-Backed Loans by Ledn: A Shift in Approach
• Business Performance of Ledn So Far
• A New Era of Risk Management in Cryptosphere
• The Potential of Custodied Loans
• Correction Notice

Crypto-Backed Loans by Ledn: A Shift in Approach

Cryptocurrency lending firm, Ledn, is now presenting its clients with crypto-backed loans where all resources stay secured with a proficient custodian. This represents a strategic shift in the company's centralized finance model, especially in a world post-FTX$3.28 -5.38%.

Business Performance of Ledn So Far

Ledn has successfully conducted a substantial volume of standard loans up until now. Bitcoin$42,260 -0.64% (BTC) put up as security is subsequently lent to partially finance the loan. To date, Ledn has processed approximately $635 million in retail loans supported by Bitcoin, and upward of $4 billion on the institutional level.

A New Era of Risk Management in Cryptosphere

The previous year's collapse of several non-transparent cryptocurrency firms has ushered in a new period of risk mitigation in the digital asset sphere. Ledn, having successfully prevented any client losses during the downfall of companies like FTX, is imposing a marginally higher charge for its latest portfolio of Custodied Loans. These loans essentially involve cryptocurrency pledged as collateral held at BitGo.

The Potential of Custodied Loans

The co-founder of Ledn, Mauricio Di Bartolomeo, stated during an interview, The collateral must remain in custody, and that custody will always be a qualified one, whether it's with BitGo or one of our banking or credit fund partners. He further added that this is the first occurrence of such a loan offering through a centralized body capable of 24-hour disbursements, marking its availability to international customers beyond the U.S.

Correction Notice

Correction (December 6, 2023, 15:56 UTC): The figure has been updated from $4 billion to $5 billion.

Edited by Jonathan Stoker