{"id":129870,"date":"2025-05-23T13:23:19","date_gmt":"2025-05-23T13:23:19","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129870"},"modified":"2025-05-23T13:23:19","modified_gmt":"2025-05-23T13:23:19","slug":"ledn-ditches-eth-shifts-to-full-custody-model-for-bitcoin-loans","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129870","title":{"rendered":"Ledn ditches ETH, shifts to full custody model for Bitcoin loans"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsDigital asset lender Ledn is transitioning to fully collateralized Bitcoin lending and discontinuing support for Ethereum, in moves designed to consolidate its BTC-focused business and further safeguard client assets against credit risks.<br \/>\nIn adopting a full custody structure for Bitcoin (BTC) loans, Ledn will no longer lend out client assets to generate interest, the company disclosed on May 23. Instead, Bitcoin collateral will remain under full custody by Ledn or one of its designated funding partners.\u00a0<br \/>\n\u201cThis means assets aren\u2019t rehypothecated, reused, or loaned out to generate yield,\u201d Ledn co-founder and CEO Adam Reeds told Cointelegraph.<br \/>\nReeds said the move brings the company back to its roots and aligns more closely with Bitcoin\u2019s founding principles.<br \/>\n\u201cBitcoin was created as a direct response to the risks of fractional reserve banking and unchecked use of client assets to generate interest,\u201d said Reed, adding:<br \/>\n\u201cTraditional finance relies on constantly reusing client assets to create leverage and, ultimately, inflation. Bitcoiners instinctively reject that model. That\u2019s why we\u2019ve moved away from this approach entirely.\u00a0<br \/>\nReed told Cointelegraph that the company is ending support for Ether (ETH) as \u201cpart of a broader strategic shift,\u201d as Bitcoin represents over 99% of Ledn\u2019s client activity.<br \/>\n\u201cRather than fragmenting the platform to chase marginal volume, we\u2019re going all-in on Bitcoin and simplifying our stack to reflect what our clients actually value,\u201d said Reed.<br \/>\nFounded in 2018, Ledn has emerged as one of the largest lenders in the digital asset space with a loan book value of $9.9 billion, according to Galaxy Research. 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.<br \/>\nThis approach is commonly used by wealthy investors, who take out low-interest loans against stocks, real estate, and other assets to access cash.<br \/>\nBitcoin\u2019s price has reached new all-time highs above $111,000. Instead of selling their assets for cash, long-term investors can borrow against their holdings. Source: CointelegraphRelated: \u2018Before Bitcoin, my most successful investment was shorting the Bolivar\u2019 \u2014 Ledn co-founder<br \/>\nDigital assets are disrupting TradFi<br \/>\nBitcoin\u2019s genesis block was mined in the wake of the global financial crisis in 2008, offering the world a sound money alternative to the inflation-prone fiat monetary system.\u00a0<br \/>\nBitcoin now thrives within traditional finance, especially after the successful launch of spot exchange-traded funds (ETFs) in 2024.<br \/>\nInstitutional investors have embraced the spot Bitcoin ETFs, as evidenced by the continued surge in cumulative inflows. Source: FarsideWhile financial institutions are increasingly embracing Bitcoin, some members of the banking lobby are reportedly concerned about other blockchain innovations disrupting their business models.\u00a0<br \/>\nSpecifically, the banking lobby is \u201cpanicking\u201d over yield-bearing stablecoins, which can pay higher interest rates and other financial incentives that traditional banks have largely abandoned, according to New York University professor Austin Campbell.\u00a0<br \/>\nReferring to banks as a \u201ccartel,\u201d Campbell said financial institutions rely on fractional reserves to maximize profits while offering depositors minimal interest.\u00a0<br \/>\nMagazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee<a href=\"https:\/\/cointelegraph.com\/news\/ledn-ditches-eth-full-custody-model-bitcoin-loans?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsDigital asset lender Ledn is transitioning to fully collateralized Bitcoin lending and discontinuing support for Ethereum, in moves designed to consolidate its BTC-focused business and further safeguard client&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129870"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129870"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129870\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129870"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}