Ledn ditches ETH, shifts to full custody model for Bitcoin loans
Ledn is shifting to fully collateralized Bitcoin lending and ceasing support for Ethereum to focus on its BTC-centric business and mitigate credit risks. The company will implement a full custody structure for Bitcoin loans, ensuring client assets are not rehypothecated or reused for yield generation. This decision aligns with Bitcoin's foundational principles against fractional reserve banking. Ledn's CEO stated that over 99% of client activity involves Bitcoin, prompting the strategic shift away from Ethereum. Founded in 2018, Ledn has a loan book valued at $9.9 billion, allowing Bitcoin holders to access liquidity without selling their assets. The rise of Bitcoin is disrupting traditional finance, with concerns from banks about yield-bearing stablecoins that offer higher interest rates.
