Bitcoin News Today: Bitcoin Borrowing Booms as Investors Tap Holdings for Liquidity, Avoid Tax Traps

Bitcoin Lending Market Surges as Ledn Hits $1 Billion in Loan Originations

Digital asset lender Ledn has surpassed $1 billion in Bitcoin-backed loan originations in 2025, signaling a robust resurgence in the crypto credit market. The Toronto-based firm reported $392 million in loan volume during the third quarter alone, nearly matching its total 2024 output and pushing its year-to-date total past the $1 billion threshold. Ledn's annual recurring revenue now stands at $100 million, driven by demand for liquidity solutions that allow investors to borrow against Bitcoin holdings without selling their assets, according to a Yahoo Finance report.

The growth in Bitcoin lending aligns with broader market trends. Sygnum Bank, a Swiss digital asset bank, is set to launch a multisignature lending product in early 2026, enabling clients to retain control of their collateral through a distributed key management system. This approach, which requires three of five key holders to authorize transactions, addresses concerns about rehypothecation and offers borrowers verifiable onchain transparency, according to Cointelegraph. Meanwhile, Wall Street giants like JPMorgan are also entering the space, with sources confirming the bank's exploration of Bitcoin-backed loans despite earlier shelving of the initiative in 2022, according to a Yahoo Finance report.

Institutional adoption is further accelerating. Cantor Fitzgerald, FalconX, and Maple Finance have all secured Bitcoin-backed credit facilities this year, while Bitcoin mining companies like Riot Platforms and Cleanspark used their holdings to secure $100 million credit lines from Coinbase Prime and Two Prime, according to Yahoo Finance. The market's legitimacy is bolstered by corporate Bitcoin accumulation, with entities like American Bitcoin Corp. (ABTC) and Michael Saylor's MicroStrategy (MSTR) expanding their treasuries. ABTC, backed by Eric Trump, recently acquired 1,414 Bitcoin, increasing its holdings to 3,865 BTC, while MSTR's total stash now exceeds 640,808 BTC, according to a Yahoo Finance article.

Regulatory developments are reshaping the landscape. The U.S. is advancing a crypto markets structure bill, and the Federal Reserve has proposed allowing stablecoin issuers direct access to the banking system. These moves reduce compliance burdens for banks, enabling firms like BNY Mellon and Fidelity to expand their crypto custody and trading services. Meanwhile, political support for digital assets, including President Trump's pro-crypto policies and the passage of the GENIUS Act, has further normalized Bitcoin as a financial instrument, according to a TheStreet article.

Market analysts project continued growth. A Canadian law firm, Osler, estimates the Bitcoin-backed lending market could reach $45 billion by 2030, up from $8.5 billion today. Galaxy Research previously identified Ledn, Tether, and Galaxy itself as the dominant centralized lenders, controlling 89% of the CeFi lending market. As Bitcoin's price surges past $100,000, long-term holders increasingly prefer borrowing against their holdings to avoid capital gains taxes, reinforcing the sector's momentum, as TradingView reports.