Ledn, a digital lending platform, has seen a significant surge in activity in the first half of 2024, processing over $1.16 billion in crypto loans. The platform offers a range of digital asset-based lending, savings, and trading products, catering to both individual investors and institutions.
One of the standout details from Ledn’s report is the impressive 29.8% quarter-over-quarter increase in retail loans. Excluding loans associated with a refinancing program, retail loans grew from $65.5 million in Q1 to $85 million in Q2. This growth reflects a growing interest among individual investors in leveraging digital assets for borrowing.
North America led the way in Q2, with $17.6 million in processed loans, followed by Latin America with $1.9 million. The increasing adoption of crypto in Latin America can be attributed to economic pressures and political instability, driving more people to explore the benefits of digital assets.
Many investors are turning to Bitcoin and Ethereum-backed loans to access capital while retaining the growth potential of their assets. Market events such as the Bitcoin halving and the emergence of Ethereum ETFs in Asia have contributed to the increased demand for Ledn’s services.
Institutional loans accounted for a significant portion of the total processed loans, totaling $969 million. This surge was fueled by the approval of spot Bitcoin ETFs in the US, leading to a rally in Bitcoin prices. Ledn facilitated several hundred million in institutional loans to ETF market makers, showcasing the growing institutional interest in digital assets.
A notable trend among Ledn’s clients is the use of digital asset-backed loans for tax optimization strategies. Borrowing against digital assets can offer significant tax advantages over selling assets, making it an attractive option for many investors.
Ledn’s comprehensive range of services includes Bitcoin-backed loans, B2X loans, Dual Cryptocurrency Notes (DCN), and its Growth Account, which offers competitive interest rates. The platform 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 in over 120 countries, Ledn is focused on providing financial services aimed at helping individuals and institutions build long-term wealth through digital asset-based products. The platform’s rigorous risk management and underwriting processes ensure high-quality institutional partnerships and continual monitoring of borrowers’ financial positions.
