Crypto Lender Ledn Now Offers ETH-Backed Loans to Meet Growing Demand
Canada-based Ledn announced Wednesday that it now offers loans backed by Ether, in response to significant client demand for the service.
The platform’s ETH-backed loans begin with a loan-to-value ratio of 50% and an annual interest rate starting at 10.4% (12.4% APR), just like its BTC-backed loan initiative.
Mauricio Di Bartolomeo, Ledn’s co-founder and Chief Strategy Officer, told Cryptonews that many users prefer to use Ethereum as collateral instead of their Bitcoin. They believe BTC should be kept more securely in cold storage, he said. Ether’s increasing regulatory acceptance is another reason to provide these loans, according to the firm.
Ether’s growing appeal is underscored by heightened interest from institutional investors. Industry giants such as BlackRock and Fidelity are currently seeking approval from the US SEC to introduce their own spot-based Ethereum ETFs.
Bartolomeo explained how straightforward the process is. “You do not need to learn how to interact with protocols to access a Ledn ETH-backed loan,” he said.
Here’s how it works. Clients fill out an application on Ledn, which can take under 2 minutes. Ledn then evaluates them. After approval, a collateral address is generated for the client to transfer their Ethereum to.
Once the loan collateral is received, Ledn disburses the loan. The loan is denominated in USD, but can be provided in USD stablecoins or the client’s preferred fiat currency. Usually, Ledn loans can be approved and funded within 24-48 hours.
Ledn says it has so far facilitated almost $5b in Bitcoin-backed loans since 2018, with no instances of client asset loss.
The lender offers ETH-backed loans in both Custodied and Standard options. This provides clients with the flexibility to select
