In this Ledn review, we cut to the chase about what you need to know. Safety, rates, access, and performance are they up to scratch? By the end of this article, you’ll have a clear picture of whether Ledn holds up to its claims, offering tangible insights for those perplexed by the array of choices in the crypto lending space.
Key Takeaways
- Ledn is a Canadian crypto lending platform offering bitcoin-backed loans and high-interest savings accounts, prioritizing security with no recorded account hacks and employing stringent measures such as AES-256 encryption.
- The platform boasts a user-friendly interface, supports cryptocurrencies like Bitcoin and USDC, and offers features such as secure storage with BitGo, hassle-free interest earnings, and a mobile app, though its services are unavailable in some US regions due to regulatory restrictions.
- Ledn provides competitive financial services, including Bitcoin loans with rapid approval and disbursement, high APY on savings accounts (up to 10% for USDC), and innovative features like B2X for doubling Bitcoin exposure, with a recent surge in assets under management to over $1.7 billion.
Unveiling Ledn: A Quick Introduction
Ledn, established in 2018 by Adam Reeds and Mauricio Di Bartolomeo, is a platform that offers bitcoin-backed loans along with high-interest savings accounts. Based in Ontario, Canada, Ledn primarily supports reputable cryptocurrencies such as Bitcoin and USDC, making it a go-to solution for digital asset investors.
Having prioritized security, the company has established itself as a trusted player in the market. No Ledn account has ever been hacked, a remarkable achievement given the inherent risks associated with digital transactions. The rigorous security measures Ledn employs, including two-factor authentication and AES-256 encryption, contribute to this trust.
Ledn’s business model serves as a testament to its commitment to growing clients’ digital wealth. The platform earns profits by lending assets to institutional investment firms, thereby allowing account holders to benefit from savings and credit products. These are bold claims, but does Ledn deliver in practice?
Getting Started with Ledn: Account Registration Process
Creating a Ledn account is a breeze. The registration process is quick, free, and doesn’t require a credit check or bank account details. All you need to provide is:
- Your name
- Email ID
- Phone number
- Date of birth
- Home address
Once your account is set up, you can access Ledn’s services from anywhere in the world, provided you’re in one of the 127 countries where it is available.
Regrettably, due to regulatory restrictions, Ledn’s services are inaccessible to residents of certain US states, including:
- Alabama
- Connecticut
- Hawaii
- Kentucky
- Louisiana
- New Jersey
- New York
- Texas
- Washington, D.C.
This is an unfortunate limitation, but it’s a small price to pay for a platform that values regulatory compliance.
Ledn Platform Design and Offerings
Ledn’s platform is designed with the user in mind. Prioritizing security, Ledn secures assets using BitGo as a custodian, with wallet protection via multi-signature technology and 3-key management. Additional security features include:
- Multi-signature security
- 2-factor authentication (2FA)
- Address safe listing
- Adherence to HTTP security protocols
These measures ensure that your digital assets are always safe.
Ledn’s platform offers the following features:
- Secure and user-friendly interface
- Hassle-free experience for earning interest on Bitcoin and USDC
- There is no minimum deposit requirement
- There are no fees, except for withdrawal fees
- A mobile app is available for iPhone and Android users, allowing you to manage your account on the go.
All these factors have contributed to Ledn’s remarkable growth. The platform now manages over $1.7 billion in assets and has seen its user base multiply almost tenfold since Q3 2020.
Operating under the Federal Laws of Canada and backed by the Canada Deposit Insurance Corporation, Ledn indeed offers a reliable regulatory framework to its users.
Ledn Alternatives and Competitors
Exploring Ledn's Key Features
One of Ledn’s standout features is its high-interest savings accounts. For Bitcoin, the platform offers up to 5.25% APY, and for USDC, it offers 8% APY. These competitive rates are likely to lure crypto enthusiasts who are keen on earning interest on their holdings.
But Ledn’s offerings go beyond savings. The platform also provides ledger-backed bitcoin loans, allowing borrowers to retain their bitcoin while potentially benefiting from its future appreciation without the need to sell. This feature offers a unique way for crypto investors to leverage their assets through a crypto lending platform.
Another innovative feature of Ledn is its B2X service. This service offers users a way to double their Bitcoin exposure through a unique combination of a Bitcoin-backed loan and purchasing an equivalent amount of Bitcoin. This unique service could prove attractive to savvy Bitcoin investors seeking to maximize their returns.
Assessing Ledn's Loan Services
Ledn’s Bitcoin-backed loans stand out for several reasons, including their ledn bitcoin-backed loan offering:
- Rapid approval times, with users often receiving instant approvals and funds disbursed within 24 hours
- Available globally without credit checks, focusing on collateral valuation
- Standard loan-to-value (LTV) ratio of 50%
But these loans do carry their own risks. If Bitcoin’s value falls significantly, borrowers are required to either add more collateral or reduce the principal balance; otherwise, Ledn may liquidate some of the Bitcoin to cover the loan.
Despite these risks, Ledn’s Bitcoin loans offer real-life benefits, such as:
- High degree of privacy, with less personal information needed during the application process
- Accessible to anyone with an internet connection, particularly beneficial to individuals in underbanked regions
- Competitive interest rates, especially when offering more collateral
- APR that includes the interest rate and any potential fees, such as origination or transaction fees
Evaluating Ledn's Savings Accounts
Ledn’s savings accounts offer competitive interest rates for Bitcoin, USDC, and USDT. For Bitcoin, they offer 1% APY for balances between 0-2 BTC and 3% APY for amounts exceeding 2 BTC. For USDC, they provide an 8.5% APY for balances up to 100,000 USDC and a 10% APY for balances over 100,000 USDC.
Ledn earns money on its savings accounts by lending Bitcoin and USDC to Genesis Capital and securing bitcoin-based loans at a 2:1 collateral ratio. Withdrawals from Ledn are processed within 24 to 72 hours, with a maximum limit of 1,000,000 USDC and 100 BTC every 7 days.
However, we must point out the recent increase in the withdrawal fee for the USDC Savings Account from 10 USDC to 35 USDC per transaction.
Ledn savings accounts also offer options for USDT, with rates identical to USDC: 8.5% APY for balances up to 100,000 USDT and 10% APY for balances exceeding that amount.
Analyzing Ledn's B2X Service
Ledn’s B2X service is designed for users looking to leverage their existing Bitcoin holdings. The service allows users to purchase more Bitcoin with a bitcoin-backed loan, aiming to double the amount of Bitcoin they hold.
While the B2X service presents the potential to double one’s bitcoin position, it carries associated risks. If Bitcoin’s value decreases, users face the risk of a margin call, requiring them to provide additional collateral or repay the loan.
B2X loans have a 50% loan-to-value ratio with an annual interest rate starting at 10.4% and can be repaid anytime within a 12-month term without penalty. Although the B2X service allows for quick responses to market changes, the platform can sell the borrower’s bitcoin if they fail to meet the loan obligations.
Access to B2X loans depends on jurisdiction, and users are advised to familiarize themselves with the Risk Disclosure Statement provided by Ledn.
What are Pros, Cons, and Features of Ledn
Pros
- High Security Standards: With no recorded account hacks and AES-256 encryption, Ledn prioritizes user security.
- Competitive Interest Rates: Offers up to 10% APY on USDC savings accounts, which is attractive in the crypto lending market.
- User-Friendly Interface: The platform is designed for ease of use, making it accessible for both beginners and experienced users.
- Global Access: Available in 127 countries, providing a broad reach for its financial services.
- Innovative Services: Features like the B2X service for doubling Bitcoin exposure cater to the needs of savvy investors.
Cons
- Limited Availability in the US: Due to regulatory restrictions, services are not accessible in certain states.
- Loan Risks: The value of Bitcoin can be volatile, and if it drops significantly, borrowers may need to provide additional collateral.
- Withdrawal Fees: An increase in withdrawal fees for USDC Savings Accounts can be a downside for some users.
Features
- Bitcoin-Backed Loans: Quick approval and disbursement, with a standard LTV ratio of 50%.
- High-Interest Savings Accounts: Competitive APY for Bitcoin and USDC, with no minimum deposit requirement.
- Mobile App: Manage your account on the go with Ledn's mobile app for iPhone and Android.
- Regulatory Compliance: Operating under the Federal Laws of Canada, providing users with a reliable regulatory framework.
- B2X Service: Offers the opportunity to double your Bitcoin holdings through a unique loan and purchase combination.
Concluding Thoughts on Ledn
Undoubtedly, Company Ledn has seen significant growth, now managing assets exceeding $1.7 billion, a 4000% increase since Q3 2020. The user base has nearly multiplied by ten, indicative of its expanding reach, especially in Latin American countries.
Ledn’s ambitions are not limited to its current offerings. With a recent $70 million in Series B funding and a valuation that has soared to $540 million, Ledn has set its sights on targeting over $100 million in Bitcoin-backed mortgage originations.
As a company operating under the federal laws of Canada, Ledn provides a reliable regulatory framework to its users. The platform’s regulatory compliance gives it a trust advantage compared to some competing platforms, further solidifying its position as a leader in the crypto lending market.
Summary
In conclusion, Ledn is a promising platform in the crypto lending space. It offers a variety of services, from high-interest savings accounts to bitcoin-backed loans and the unique B2X service. The platform’s focus on security, user experience, and regulatory compliance makes it a reliable choice for crypto investors.
Despite some limitations, such as the inability to access services in certain US states and the risks associated with loans, the platform continues to grow and expand. With a strong focus on customer service and a commitment to maintaining regulatory compliance, Ledn represents a solid choice for anyone looking to explore the realm of crypto lending.
Frequently Asked Questions
What is the earn rate for ledn?
The earn rate for Ledn is 12% simple interest per year, with a maximum loan-to-value (LTV) ratio of 50%, and funds can be received within 24 hours of approval. Ledn also offers competitive interest rates of 8.50% APY and is transparent in its actions by publishing monthly open book reports and biannual proof-of-reserve attestations.
How does ledn loan work?
Ledn's custodies loans work by posting collateral to a regulated bank or credit fund, ensuring it cannot be lent out to generate interest. This provides security for the loan process.
Where is ledn based?
Ledn is based in Toronto, Ontario, Canada. It is a financial services firm that provides access to digital assets such as Bitcoin-backed loans.
Is ledn a bank?
No, Ledn is not a traditional bank, but it operates as a cryptocurrency banking platform, offering lending, borrowing products, interest-bearing cryptocurrency accounts, and crypto loans. It offers features similar to those of a bank but is not classified as a traditional bank.
How do I earn interest on bitcoin?
You can earn interest on your Bitcoin by lending it out through platforms like Nexo or SALT Lending, or by using crypto interest accounts offered by exchanges or DeFi apps. This allows you to generate additional income from your cryptocurrency holdings.
