Ledn Eyes California Expansion as TradFi Prepares to ‘Deploy Big Dollars at Scale’: CEO
Ledn, a crypto lender active in over 130 countries, is seeking to expand its services in the U.S., having submitted an application for approval in California. The company, established in 2018, is one of the largest centralized crypto lenders remaining after significant market disruptions in 2022. Ledn, along with Tether, accounted for 90% of $11.2 billion in outstanding loans by the end of last year. Most of Ledn's business involves lending U.S. dollars to Bitcoin holders, with loans starting at $500. The entry of institutional players like Cantor Fitzgerald is expected to lower capital costs and enhance service affordability. Ledn operates across 39 states and aims for licensing in all 50 states, with a significant portion of its $1.5 billion assets linked to the Global South. The firm has seen a 140% increase in assets over the past year, providing access to capital in regions with poor property rights. Increased competition in the sector is anticipated to reduce fees and improve liquidity. Centralized lenders still face reputational challenges but are becoming more transparent as users shift towards decentralized finance (DeFi).
