Ledn stops Ethereum: Bitcoin loans in focus - minimize risk!

Ledn stops Ethereum: Bitcoin loans in focus - minimize risk!

Crypto lender Ledn is taking a decisive step in a new direction: starting July 1, 2025, the company will stop supporting Ethereum and focus exclusively on Bitcoin-backed loans. This decision is in response to the challenges that many crypto companies have suffered in 2022 due to bankruptcies and signals a return to the original principles of Bitcoin technology. CEO Adam Reeds emphasizes that Ledn wants to impress with solid risk management and the security of customer funds in order to strengthen trust in the crypto market. Loud it-boltwise Ledn has originated over $9.5 billion in loans since its inception and has established itself as a leader in the Bitcoin sector.

The decision to remove Ethereum from the portfolio follows a period in which Ledn offered Ether-backed loans to help victims of the Celsius bankruptcy as recently as February 2024. But increasing uncertainty in the crypto market now requires a more focused approach. Wallets deposited by borrowers for collateral remain in the custody of Ledn or trusted partners, providing additional security. This shows that Ledn still wants to minimize credit risk for its users.

Market development and new challenges

In the current crypto market, there has been a noticeable increase in interest in centralized Bitcoin lending, especially as the Bitcoin price is once again reaching new all-time highs. Loud coin guide Crypto Lending offers a form of P2P lending in which lenders make their cryptocurrencies available and receive interest in return. Returns are in the high single digits, but can be higher for certain platforms and coins.

Ledn wants to increase transparency about how assets are handled and at the same time relies on proven methods to minimize risk. The crypto lending process is standardized and anonymous, but lacks insight into the borrowers. Borrowers must deposit their own assets as collateral, which poses additional risks, especially when coins are stored on centralized platforms.

Competition and market position

Companies like Strike, Xapo Bank and Coinbase have also launched Bitcoin-backed lending programs. These developments mark a trend in the crypto industry that is increasingly characterized by the principles of Bitcoin as a safe and stable asset. Ledn has already carried out proof-of-reserves attestations since 2020, which contribute to the stability of the company.

Ledn's decision to focus on Bitcoin and abandon Ethereum could provide new impetus to the crypto lending landscape and create scope for innovation that promotes both security and transparency. Current developments show that the crypto market is still on the move and presents both challenges and opportunities for players.