Canada-based Ledn Now Provides Loans Backed by Ether
Ledn, a Canada-based platform, has announced that it now offers loans backed by Ether (ETH) due to high demand from its clients. The decision to introduce ETH-backed loans was driven by the preference of many users to use Ethereum as collateral instead of Bitcoin. Ledn believes that BTC should be kept in cold storage for enhanced security. Additionally, the growing regulatory acceptance of Ether played a role in the platformโs decision to provide these loans.
Etherโs popularity is further supported by increased interest from institutional investors. Companies like BlackRock and Fidelity are currently seeking approval from the US Securities and Exchange Commission (SEC) to launch their own Ethereum exchange-traded funds (ETFs).
The process of obtaining an ETH-backed loan from Ledn is simple and user-friendly. You donโt need to learn how to interact with protocols to access the loan. Hereโs how it works:
- Fill out an application on Ledn, which takes less than 2 minutes.
- Ledn evaluates your application.
- If approved, Ledn generates a collateral address for you to transfer your 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 your preferred fiat currency.
- Ledn loans can typically be approved and funded within 24-48 hours.
Since 2018, Ledn has facilitated nearly $5 billion in Bitcoin-backed loans without any instances of client asset loss.
Lednโs Plans for E2X Loans
Ledn offers ETH-backed loans in both Custodied and Standard options, allowing clients to choose their preferred collateral management approach. Ledn also provides monthly Open Book Reports to give customers transparency about their collateral, interest rates, and loan funding.
The platform offers global access to its ETH-backed dollar loans with low minimums, no monthly payments, and flexible repayment options. Ledn plans to expand its ETH loan offerings by introducing an E2X service, similar to its B2X loans, in suitable jurisdictions. The B2X loan product enables clients to double their BTC holdings.
Hot Take: Meeting the Growing Demand for ETH-Backed Loans
With the increasing demand for cryptocurrency-backed loans, Ledn has responded by offering loans backed by Ether. This move caters to users who prefer using Ethereum as collateral and recognizes the need to keep Bitcoin more securely in cold storage. Lednโs simple loan application process and quick funding time make it a convenient option for borrowers.
As institutional interest in Ether continues to rise, Lednโs decision to provide ETH-backed loans aligns with the growing acceptance of Ethereum in the financial industry. With plans to introduce an E2X service in the future, Ledn aims to further expand its loan options and cater to the evolving needs of cryptocurrency investors.
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