Key Takeaways
- Ledn will stop ETH lending and BTC/ETH yield accounts on July 1.
- All client assets will remain fully custodied to eliminate lending risk.
- The move comes as BTC-backed lending competition intensifies.
Ledn, the centralized lending platform, is ending support for Ethereum-backed loans and discontinuing its interest-bearing accounts as it moves toward a fully custodied bitcoin-only model.
The changes take effect July 1, the company confirmed in a statement shared on May 23.
Elimination of third-party credit exposure
The firm will no longer lend out client assets to generate yield, eliminating third-party credit exposure.
Instead, it will exclusively offer bitcoin-collateralized loans where assets remain under custody by Ledn or its partners.
CEO Adam Reeds said:
With our new hyper-focus on bitcoin-only lending, we’re going back to our roots. Bitcoin was created as a direct response to the risks of fractional reserve banking… That’s why we’ve moved away from this approach entirely.
Retirement of growth accounts
Ledn had only introduced ETH-backed loans in February 2024, partially to help refinance users impacted by Celsius’s collapse.
Now, it’s retiring both BTC and ETH “Growth Accounts,” which previously offered up to 4% APY.
Competitive landscape & market positioning
The decision comes amid renewed interest in bitcoin-backed lending, especially as BTC trades at all-time highs.
Competitors such as Strike, Coinbase, Xapo Bank, and Unchained have recently launched or expanded their bitcoin loan products.
However, Ledn is positioning itself as a lower-risk alternative by avoiding opaque structures and prioritizing transparency.
Commitment to transparency & security
Ledn introduced proof-of-reserves attestations in 2020 and says it has originated over $9.5 billion in loans.
The company believes its simplified, bitcoin-focused approach should be the standard for digital asset lenders.
