Digital lending platform Ledn has processed over $1.16 billion in crypto loans in the first half of 2024. Ledn offers a suite of digital asset-based lending, savings, and trading products.
Retail Loans grows 29.8% Q-o-Q
A standout detail from the report is the 29.8% quarter-over-quarter increase in retail loans. Excluding the $40 million loans associated with Ledn’s Celsius refinancing program, retail loans grew from $65.5 million in Q1 to $85 million in Q2. This growth highlights a rising interest among individual investors in leveraging digital assets for borrowing.
“We are thrilled to see this significant quarter-over-quarter growth in retail loans, which indicates that our strategic shifts and expanded services are resonating with our clients,” Ledn CEO, Adam Reeds, said in a statement. “This growth represents a continued vote of confidence from our clients and underscores the strength of our business model in the evolving crypto lending landscape.”
North America leads in Q2 with $17.6 million in processed loans
In terms of regional performance, North America led the way in Q2, generating $17.6 million in processed loans. Latin America followed, contributing $1.9 million in loans. The increasing crypto adoption in LATAM can be attributed to economic pressures and political instability, which have driven more people to seek the benefits of digital assets.
Many investors are opting for Bitcoin and Ethereum-backed loans
Broader market events, including the recent Bitcoin halving and the emergence of Ethereum ETFs in Asia, have played a crucial role in boosting the demand for Ledn’s services.
Many investors are opting for Bitcoin and Ethereum-backed loans to access capital while preserving their underlying assets’ growth potential. This strategy is particularly pertinent as the market anticipates the launch of Ethereum ETFs.
Institutional Loan Accounts for Major Share
Of the total $1.16 billion processed, institutional loans accounted for $969 million. This surge was driven by the approval of various spot Bitcoin ETFs in the US, which led to a significant rally in Bitcoin prices.
Ledn facilitated several hundred million in institutional loans to ETF market makers, reflecting the growing institutional interest in digital assets.
Client Tax Optimization Strategies
A notable trend among Ledn’s clients is the use of digital asset-backed loans to optimize tax strategies.
Borrowing against digital assets typically remains a non-taxable event, offering significant tax advantages over selling assets. This aspect has made digital asset-backed loans an attractive option for many investors.
Ledn provides a comprehensive range of services, including Bitcoin-backed loans, B2X loans, Dual Cryptocurrency Notes (DCN), and its flagship Growth Account. The Growth Account offers competitive interest rates, earning up to 10.5% APY on USD Stable Coins (USDC, USDT), 2.5% APY on Bitcoin, and 4% APY on Ethereum. Ledn is also pioneering third-party proof-of-reserves standards in the digital asset lending industry, enhancing transparency and trust with its monthly Open Book Reports.
With operations spanning over 120 countries, Ledn aims to build financial services aimed at helping people build long-term wealth through digital asset-based products. The company’s rigorous risk management and underwriting processes ensure that it maintains high-quality institutional partnerships and continual monitoring of borrowers’ financial positions.