Crypto Lending Platform Ledn Now Supports Ether-Backed Loans
Crypto lending platform Ledn has recently announced its expansion to support loans collateralized in ether, in addition to its existing bitcoin-backed loans. Lednโs Chief Investment Officer, John Glover, stated that as the crypto industry matures, more digital assets are proving their worth and resilience. This move aims to assist those affected by the bankruptcy of Celsius and provide them with an alternative option for refinancing their outstanding ether loans.
Accessing Liquidity with Ether Assets
- Lednโs new product allows users to access liquidity in their ether assets tax efficiently.
- Customers can take out USDC, U.S. dollar, or other fiat currency loans.
- The loans are collateralized by ether and once repaid, the collateral is returned to the customer.
Loan Terms and Features
- Ether-backed loans start at a loan-to-value ratio of 50%.
- The annual interest rates for these loans start from 10.4% (12.4% APR).
- The loans are available globally, with small minimums and no monthly payments.
- Flexible repayment options are provided, and funds are typically disbursed within 24 hours.
Standard vs. Custodied Loans
- Users have the option to choose between โstandardโ or โcustodiedโ loans.
- โStandardโ loans give Ledn the right to lend the collateral and earn interest on it.
- โCustodiedโ loans involve holding the collateral in custody with qualified custodians and banks.
Assisting Victims of Celsiusโ Bankruptcy
Lednโs expansion to support ether-backed loans is partly motivated by the desire to help victims of Celsiusโ bankruptcy in July 2022. Ledn expects to onboard many former Celsius customers who are seeking to refinance their outstanding loans elsewhere. The company has already received interest totaling over $45 million worth of bitcoin and ether-backed loans from these customers.
Celsius emerged from Chapter 11 bankruptcy in January and has since distributed $3 billion worth of cryptocurrency and fiat to its creditors.
Lednโs Crypto Savings Product
In September 2023, Ledn expanded its crypto savings product to include ether. This addition complements the existing savings products for bitcoin, USDC, and USDT, offering annualized yields of up to 4% APY as an alternative to staking solutions.
Since its inception in 2018, Ledn claims to have processed nearly $5 billion in bitcoin-backed loans.
๐ฅ Hot Take: Providing More Options for Crypto Borrowers ๐ฅ
By expanding its lending services to include ether-backed loans, Ledn is catering to the growing demand for alternative collateral options in the crypto lending market. This move not only supports those affected by Celsiusโ bankruptcy but also provides users with more flexibility and access to liquidity. With Lednโs reputation as a trusted crypto lending platform, you can confidently explore their loan offerings and make informed decisions based on your specific needs and preferences.
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