Ledn Shifts to Bitcoin-Only Model, Drops ETH Support 🚀

Centralized crypto lender Ledn is ceasing its Ethereum support and bitcoin yield generation to focus solely on bitcoin-collateralized lending. Starting July 1, Ledn will no longer lend client assets for yield, ensuring protection from third-party credit risk. Instead, it will only offer 'Custodied Bitcoin' loans, where client collateral is securely held by Ledn or trusted partners. Although Ledn expanded to support Ethereum-backed loans in February 2024 to aid those affected by Celsius's 2022 bankruptcy, this will be discontinued as the firm returns to its Bitcoin roots. Adam Reeds, Ledn's CEO, emphasized their alignment with Bitcoin's fundamental principles, moving away from leveraging client assets for interest. Ledn will retire its BTC and ETH 'Growth Accounts' and focus solely on transparent Bitcoin-backed loans. Despite setbacks in the crypto lending scene following major bankruptcies in 2022, interest in centralized Bitcoin lending is rekindling as Bitcoin prices soar. Companies like Strike are also introducing Bitcoin-backed lending, emphasizing the growing demand. Ledn is addressing risks by avoiding opaque lending structures and establishing a new standard of clarity and security, contributing to their issuance of over $9.5 billion in loans. The company advocates for a transparent, risk-managed approach within the evolving regulatory landscape. As the first to use proof-of-reserves in 2020, Ledn continues to prioritize transparency, aiming to set the benchmark for crypto lending security. Disclaimer: This article is for informational purposes only and not intended as legal or financial advice.