Bitcoin Lending Boom: Ledn Surpasses $1B in Loans

Digital asset lender Ledn has reached a major milestone in the rapidly growing world of cryptocurrency finance, surpassing $1 billion in Bitcoin-backed loan originations this year. This achievement reflects the increasing confidence of investors who prefer to use their Bitcoin holdings as collateral rather than sell them, especially amid the ongoing crypto bull market that continues to drive up asset values.

During the third quarter alone, Ledn issued approximately $392 million in Bitcoin-secured loans, bringing the company’s total cumulative loan volume to more than $2.8 billion across over 100 countries since its establishment. The firm also reported generating nearly $100 million in annual recurring revenue, highlighting the strong global demand for Bitcoin-based lending products.

Ledn’s unique approach ensures that all loans are fully collateralized with Bitcoin, meaning borrowers maintain ownership of their digital assets while accessing liquidity. Throughout the lending period, the Bitcoin collateral is securely held in custody and verified through independent Proof-of-Reserves audits conducted by trusted third-party firms. This transparency builds trust among clients who value the security of their Bitcoin.

Earlier this year, Ledn made a strategic move to discontinue its Ether (ETH) lending services, focusing entirely on Bitcoin custody and lending. This decision underlines the company’s commitment to becoming a global leader in Bitcoin-backed financial services. According to research conducted by Galaxy, Ledn ranks among the top three centralized finance (CeFi) lenders in the world, alongside Tether and Galaxy. Together, these firms account for nearly 89% of the CeFi lending market and about 27% of the broader digital asset lending ecosystem.

The rise of Bitcoin lending reflects a significant shift in investor behavior. Many long-term holders prefer borrowing against their Bitcoin rather than selling it to avoid capital gains taxes, effectively unlocking liquidity while preserving future upside potential. With Bitcoin surpassing $100,000, the sense of wealth among holders has fueled demand for credit products backed by Bitcoin.

According to projections by the Canadian law firm Osler, Hoskin & Harcourt LLP, the Bitcoin-backed lending market could expand from its current valuation of around $8.5 billion to as much as $45 billion by 2030. This surge will be supported by increasing institutional participation, such as the recent involvement of Cantor Fitzgerald, which finalized its first Bitcoin-secured lending deal in collaboration with Maple Finance and FalconX. This development demonstrates Wall Street’s growing embrace of Bitcoin-based financial products.

Cantor Fitzgerald officially entered the Bitcoin lending market in 2024, backed by an impressive $2 billion in initial capital. As traditional financial institutions continue to engage with digital assets, Bitcoin-backed credit products are emerging as a bridge between conventional finance and the decentralized economy. The expansion of Bitcoin lending highlights the cryptocurrency’s transition from a speculative investment to a mature financial instrument capable of supporting global credit markets.

In conclusion, Ledn’s growth and the broader rise of Bitcoin-secured lending underscore a new phase in financial innovation. As more individuals and institutions recognize the stability, transparency, and profitability of Bitcoin lending, this sector is expected to play a central role in shaping the future of global finance.