Crypto lender Ledn has reported processing $506 million in loan transactions during the third quarter, with $437.7 million issued to institutional clients and $68.9 million to retail clients. The surge in retail loans is credited to various factors, including the Celsius refinancing program, the launch of crypto ETFs, and a period of reduced market volatility. Ledn has processed a total of $1.67 billion in loans year-to-date, serving both retail and institutional markets.
The growing demand for digital asset-backed lending is driving Ledn’s success, as more significant players explore alternative financing options. This trend is influenced by tighter monetary policies and fierce competition for dollar-based funding. The third quarter’s growth followed a strong second quarter, with increased demand driven by notable market events such as the Bitcoin halving and the introduction of Ethereum ETFs in Asia. Macro-economic conditions like rising inflation and economic uncertainty are also contributing to the surge in demand.
Ledn’s Chief Investment Officer, John Glover, highlighted that institutional demand spiked in July, coinciding with the approval of Ethereum ETFs for trading in the US by the Securities and Exchange Commission. Glover also mentioned that the market is eagerly awaiting the next catalyst to push Bitcoin’s price to a new all-time high. He suggested that the upcoming US elections could potentially be that trigger, with institutional borrowing demand remaining consistent with overall ETF demand. The market is optimistic about the potential impact of the elections on Bitcoin’s price.
Ledn, founded in 2018, has facilitated over $6.5 billion in loans across retail and institutional markets. The company’s success is attributed to its ability to meet the growing need for digital asset-backed lending and provide alternative financing options to clients. The impact of market events such as the Bitcoin halving and the introduction of Ethereum ETFs in driving demand for Ledn’s services cannot be overlooked.
Overall, Ledn’s robust performance in processing loan transactions during the third quarter and year-to-date demonstrates the company’s position as a key player in the crypto lending space. With growing demand for digital asset-backed lending and a focus on alternative financing options, Ledn is well-positioned to continue its success in serving both retail and institutional clients in the future.
