Ledn Launches Custodied Loans, Bringing A New Level Of Collateral Safeguards For All Customers

Announcing the first custodied crypto loans outside of the US, providing simplified account management, a user-friendly experience and transparency to retail and corporate clients worldwide

Here at Ledn, we’re excited to announce our new Custodied Loan offering, available to all of our clients around the globe. Custodied Loans are specifically designed to bring peace of mind to customers by ensuring their collateral may only be re-posted by Ledn to a trusted institutional USD funding partner, such as a bank, credit fund or other corporate funding partner, where it is securely held and legally ring-fenced.

After the events of 2022, Ledn committed to providing both transparency and risk mitigation with all of our products. Offering Custodied Loans is an extension of this philosophy. Now, Ledn clients can choose between our Standard loans, which lends out loan collateral in order to lower interest rates for clients, and our new Custodied loans. When a customer chooses our Custodied offering, they can rest easy knowing that the loan collateral may only be re-posted by Ledn to a trusted institutional USD funding partner, such as a bank, credit fund or other corporate funding partner, and cannot be further lent out to generate interest. Collateral is held securely in segregated and verifiable on-chain addresses, ensuring that the collateral is legally ring-fenced from a funding partner’s assets and protected even in the unlikely bankruptcy of our funding partner. Custodied loan collateral is also legally ring-fenced from the credit risks associated with rehypothecation or lending activities related to Standard Loans and Ledn Growth accounts.

Offering products that reduce credit risk, while also giving them the choice in how their digital asset collateral is used, is a core part of what we do. Now, all of our customers can choose either our Standard Loan or our new Custodied Loan, which currently come with an APR of 12.4% and 14.9%*, respectively. The latter marks a significant milestone both for Ledn and the crypto ecosystem as a whole, since it’s the first custodied loan to be made available to retail and corporate clients outside of the United States. Unlike other loans requiring a multi-signature wallet to access, Ledn offers simplified account management, delivering a more user-friendly experience while maintaining robust collateral safeguards.

As Adam Reeds, our co-founder and Chief Executive Officer said,

“The introduction of Custodied Loans demonstrates our commitment to providing transparent, simple, and client-focused lending solutions. By offering a choice between Custodied and Standard loans, we empower our clients to select the loan type that aligns with their preferences regarding collateral management and interest rates.”

For more information regarding our new Custodied loans, please visit our website and FAQs.

*Please note that, due to recent market developments, we've had to increase the borrowing rates for this product to 15.9% APR (vs. the 14.9% that was previously communicated).