Digital asset lender Ledn has reported a record-breaking quarter for its Bitcoin-backed credit products, with $392 million in loans originated in Q3 alone, pushing its year-to-date Bitcoin-backed loan originations past the $1 billion mark. Since its inception, Ledn has facilitated more than $2.8 billion in total crypto-backed loans across over 100 countries. The company offers fully collateralized loans secured by Bitcoin, which is held in custody for the entire lending period and verified through independent Proof-of-Reserves attestations.
Earlier this year, Ledn streamlined its focus exclusively on Bitcoin custody and lending by discontinuing Ether-backed loans. According to an April Galaxy Research report, Ledn stands among the top three centralized finance lenders, alongside Tether and Galaxy, collectively representing nearly 89% of the CeFi lending market.
Bitcoin’s surge beyond $100,000 has fostered a wealth effect for long-term holders, many of whom now prefer borrowing against their Bitcoin instead of selling and incurring capital gains taxes. Experts from Osler, Hoskin & Harcourt LLP predict the Bitcoin-backed lending market could expand from approximately $8.5 billion today to $45 billion by 2030.
Institutional interest is also rising; for instance, Cantor Fitzgerald entered the Bitcoin-backed lending space in 2024 with an initial $2 billion capital commitment, partnering with Maple Finance and FalconX to complete its first Bitcoin-backed lending deal. This growth underscores Wall Street’s increasing engagement with crypto credit markets.”;