Ledn tops $1B in Bitcoin-backed loan originations as crypto lending surges
Analysis
Price Impact
MedLedn's significant growth in bitcoin-backed loans signifies increasing utility and adoption for btc, as holders leverage their assets without selling. this indicates growing confidence in btc's long-term value and reduces potential selling pressure.
Trustworthiness
HighThe information is sourced from cointelegraph, a reputable crypto news outlet, citing ledn's official reports and supported by third-party analysis from galaxy research and a canadian law firm.
Price Direction
BullishThe surge in btc-backed loans suggests that long-term holders are opting to borrow against their bitcoin rather than sell it, often to avoid capital gains taxes or to leverage market gains. this behavior indicates strong conviction in bitcoin's future price appreciation and reduces circulating supply, which is fundamentally bullish.
Time Effect
LongThe trend of growing bitcoin-backed lending, institutional involvement (e.g., cantor fitzgerald), and market growth projections to $45 billion by 2030 suggest a sustained, long-term impact on bitcoin's utility and market structure.
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Sam Bourgi 2 minutes ago Ledn tops $1B in Bitcoin-backed loan originations as crypto lending surges Ledn has facilitated $2.8 billion in cumulative crypto-backed loans as holders leverage market gains amid the bull market. Listen 0:00 17 News COINTELEGRAPH IN YOUR SOCIAL FEED Digital asset lender Ledn has reported a record quarter for its Bitcoin-backed credit products, as more investors chose to borrow against their holdings amid the ongoing crypto bull market. The company originated $392 million in Bitcoin ( BTC )-backed loans during the third quarter, pushing year-to-date originations past $1 billion. Since its inception, Ledn has issued more than $2.8 billion in total loans across over 100 countries, the company said. Ledn also reported generating approximately $100 million in annual recurring revenue. The company provides fully collateralized loans, with Bitcoin collateral held in custody throughout the lending period. Ledn’s reserves are verified through independent third-party Proof-of-Reserves attestations. As Cointelegraph previously reported , Ledn discontinued Ether ( ETH ) lending earlier this year to focus exclusively on its Bitcoin custody and lending business. An April report by Galaxy Research identified Ledn as one of the three largest centralized finance (CeFi) lenders, alongside Tether and Galaxy. Together, the three companies accounted for nearly 89% of the CeFi lending market and 27% of the overall digital asset lending market at the time. Source: Ledn Related: ‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder Bitcoin-backed lending grows amid bull market Bitcoin’s surge above $100,000 has created a new wealth effect among long-term holders, prompting many to borrow against their Bitcoin rather than sell and incur capital gains taxes. According to a recent estimate from Osler, Hoskin & Harcourt LLP, a Canadian law firm specializing in financial regulation and digital assets, the Bitcoin-backed lending market could grow to $45 billion by 2030, up from roughly $8.5 billion today. Institutional interest is also accelerating. Earlier this year, Cantor Fitzgerald completed its first Bitcoin-backed lending deal in partnership with Maple Finance and FalconX, underscoring Wall Street’s growing participation in crypto credit markets. Cantor announced its entry into the Bitcoin-backed lending market in 2024, backed by an initial $2 billion in capital. Magazine: Review: The Devil Takes Bitcoin, a wild history of Mt. Gox and Silk Road # Bitcoin # Business # Bitcoin Price # Lending # DeFi Add reaction