Ledn Drops Ethereum, Adopts Bitcoin-Only Custody Model

Ledn, a prominent cryptocurrency custody platform, has announced a significant shift in its business model. Effective July 1, 2025, the company will discontinue support for Ethereum and transition to a Bitcoin-only lending and custody model. This strategic move is part of Ledn's broader effort to simplify its services and minimize client risk.

The decision to adopt a Bitcoin-only model comes as a response to rising demand for BTC-backed loans and increasing regulatory pressure. By focusing solely on Bitcoin, Ledn aims to provide a more secure and reliable custody solution for its clients. The platform will no longer use client assets to generate yield, instead opting for a full custody model where users’ bitcoin will either remain in direct custody or with trusted custody partners. This approach eliminates intermediaries and lending loops, reducing potential default risk and aligning with Bitcoin’s principles of financial self-custody and transparency.

Ledn's new model is designed to appeal to users seeking safer custody options in the lending market. The platform's shift away from yield farming and diversified altcoin services underscores its commitment to prioritizing security and compliance. This strategy also reflects the growing divide between platforms prioritizing yield and those emphasizing custody and security. As more users grow cautious of leverage-based lending, Ledn’s model may attract a broader base of Bitcoin-maximalist clients.

The removal of Ethereum and the shift to full Bitcoin custody also align with regulatory trends. Ledn appears to be positioning itself for stricter compliance standards as regulators worldwide increase scrutiny on digital asset management. By focusing solely on Bitcoin, Ledn aims to differentiate from competitors still offering multi-asset services and yield-based products, catering to the rising institutional interest in BTC and the demand for secure lending options.

Ledn's decision to embrace a Bitcoin-only custody model is a strategic move that aligns with the growing trend in the cryptocurrency industry towards specialization. As the market matures, companies are increasingly focusing on specific niches to provide more tailored and efficient services. Ledn's focus on Bitcoin custody is expected to provide a more secure and reliable service for its clients, potentially proving to be a competitive advantage in the long run.