Crypto Lender Ledn to Offer 8.5% APY on USDT Savings
Crypto lender Ledn is launching a new USDT Growth Account that will offer an annual percentage yield (APY) of 8.5% on savings deposits. This move comes as the company transitions its existing USDC savings accounts to these new Growth Accounts. Ledn, based in the Cayman Islands, plans to use the USDT Growth Accounts to strengthen its retail loan book. Borrowers on the platform must provide collateral for their loans, which allows Ledn to back the funding from the Growth Accounts using bitcoin deposits.
Higher Yields Compared to DeFi Lending Platforms and Traditional Money Market Funds
Ledn claims to offer the highest stablecoin yield in the crypto industry, surpassing rates on DeFi lending platforms such as Compound, Aave, and Spark Protocol. While crypto yields have decreased since the 2021 bull market, Ledn’s 8.5% APY is also higher than the up to 5.5% available in traditional money market funds. Ledn co-founder Mauricio Di Bartolomeo believes these accounts provide a safer and more transparent way to earn yield, making them a great alternative to Treasury Bills.
Ring-Fenced Accounts and Increased Transparency
Ledn’s Growth Accounts are designed to address the lack of trust caused by the collapse of centralized lending platforms in 2022. Ledn emphasizes transparency by providing an Open Book Report and an improved client dashboard. The Growth Accounts are legally ring-fenced, protecting users in the event of bankruptcy and minimizing risks associated with each type of account. Ledn also offers a crypto savings experience that avoids the risks associated with decentralized finance protocols, which have been prone to hacks and exploits.
Expanding Services and Crypto-Native Investments
In addition to its savings accounts, Ledn recently partnered with crypto real estate broker Parallel to enable investors to use their digital assets to finance the acquisition of properties in the Cayman Islands. This move allows investors to pursue a “Golden Visa” through a crypto-native path, expanding Ledn’s services and catering to the growing demand for crypto-related investments.
Hot Take: Ledn Empowers Crypto Users with High-Yield Savings and Enhanced Security
Ledn’s introduction of the USDT Growth Account with an 8.5% APY demonstrates the company’s commitment to providing lucrative opportunities for crypto holders. By offering higher yields than both DeFi lending platforms and traditional money market funds, Ledn appeals to users seeking greater returns on their investments. Furthermore, Ledn’s emphasis on transparency, ring-fenced accounts, and protection against bankruptcy distinguishes it from other lending platforms, as it addresses concerns surrounding trust and security. Ledn’s expansion into crypto-native investments, such as the partnership with Parallel for property acquisitions, showcases its dedication to catering to the evolving needs of the crypto community. Overall, Ledn’s offerings empower crypto users by combining attractive yields with enhanced security measures.
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