Ledn Drops Ethereum, Focuses Solely on Bitcoin Lending

Ledn, a prominent digital asset lender, has announced a significant strategic shift in its operations. The company will transition to a fully collateralized Bitcoin lending model and discontinue support for Ethereum (ETH). This move is designed to consolidate Ledn's Bitcoin-focused business and enhance the security of client assets against credit risks.

Under the new full custody structure, Ledn will no longer lend out client assets to generate interest. Instead, Bitcoin collateral will remain under full custody by Ledn or one of its designated funding partners. This ensures that assets are not rehypothecated, reused, or loaned out to generate yield. Ledn co-founder and CEO Adam Reeds explained that this approach aligns more closely with Bitcoin’s founding principles, which were created as a direct response to the risks of fractional reserve banking and unchecked use of client assets to generate interest.

Reeds emphasized that traditional finance relies on constantly reusing client assets to create leverage and, ultimately, inflation. Bitcoiners instinctively reject that model, which is why Ledn has moved away from this approach entirely. The company is ending support for Ether as part of a broader strategic shift, as Bitcoin represents over 99% of Ledn’s client activity. Reeds stated that rather than fragmenting the platform to chase marginal volume, Ledn is going all-in on Bitcoin and simplifying its stack to reflect what clients actually value.

Founded in 2018, Ledn has emerged as one of the largest lenders in the digital asset space. The company enables Bitcoin holders to borrow against their assets, giving them access to liquidity without having to sell their holdings or trigger a taxable event. This approach is commonly used by wealthy investors, who take out low-interest loans against stocks, real estate, and other assets to access cash.

Ledn's decision to ditch ETH and focus solely on Bitcoin loans reflects a broader trend in the industry. Bitcoin's status as a store of value and its relative stability compared to other cryptocurrencies make it an attractive option for investors and lenders alike. This move also underscores the importance of security and transparency in the cryptocurrency industry, as investors increasingly seek out platforms that prioritize these values.

For Ledn, the transition to a full custody model positions the company as a leader in secure and transparent financial services. By prioritizing the safety of client assets, Ledn can build trust and attract more users to its platform. This decision also highlights the evolving landscape of digital assets, where there is a growing demand for secure and transparent financial services that can compete with traditional banking institutions.

Ledn's shift to a full custody model for Bitcoin loans is a testament to the enduring appeal of Bitcoin as a store of value and a medium of exchange. This move reflects the growing recognition of the need for secure and transparent financial services in the cryptocurrency space, as investors seek out platforms that can offer these benefits.