Ledn Drops Ethereum Support to Refocus on Fully Custodied Bitcoin Lending Amid Growing Market Demand
Crypto lending platform Ledn is making a decisive strategic pivot, discontinuing Ethereum support and interest-bearing accounts to embrace a bitcoin-only, fully custodied lending model. The move underscores a broader industry recalibration following the volatility of 2022 and reflects rising competition in the bitcoin-collateralized loan space.
Starting July 1, Ledn will no longer offer yield-generating accounts or accept Ethereum (ETH) as collateral. Instead, the company will focus solely on its “Custodied Bitcoin” loans — a structure where clients’ BTC remains securely held in custody and is not exposed to third-party credit risk. The decision marks a return to Ledn’s original mission and values, according to CEO and co-founder Adam Reeds.
“Bitcoin was created as a direct response to the risks of fractional reserve banking,” said Reeds. “We’re rejecting the old model of rehypothecation and moving towards complete asset transparency and custody.”
From Diversification to Specialization
Ledn had only introduced ETH-backed loans in February 2024, a move partly aimed at helping users affected by Celsius Network’s collapse to refinance their positions. But just over a year later, the company is exiting that offering entirely, signaling a strong commitment to bitcoin maximalism.
As part of the overhaul, Ledn will also retire its “Growth Accounts” — interest-bearing savings products that offered yields of up to 4% on BTC and ETH. These accounts were once a cornerstone of the platform's appeal but will now be phased out in favor of a risk-minimized lending-only structure.
Lessons from the Past, Eyes on the Future
The collapse of several centralized crypto lenders in 2022 — including Celsius, BlockFi, and Voyager Digital — cast a long shadow over the space. Concerns over transparency, risk exposure, and asset rehypothecation led many users to lose trust in custodial platforms.
Ledn, which avoided insolvency during that crisis, credits its survival to prudent risk management and a commitment to safeguarding client assets. The company was also the first in the space to introduce third-party verified proof-of-reserves in 2020 — a move it believes reinforced confidence during turbulent times.
Now, as Bitcoin climbs toward new highs, the appetite for BTC-backed lending is resurging. Retail and institutional users alike are seeking ways to leverage their crypto holdings without triggering taxable events or selling core assets.
This demand has attracted other players, including Strike, Xapo Bank, Unchained, and Coinbase — each offering their own spin on bitcoin-collateralized loans. But Ledn says its simplified, fully custodied model is designed to stand apart from competitors reintroducing “risky and opaque” practices.
“As more players reintroduce half-baked lending products, we’re taking the opposite path — eliminating lending risk altogether,” Reeds said. “This clarity has enabled us to originate over $9.5 billion in loans and remain the leading retail CeFi lender in the Bitcoin ecosystem.”
A Regulated Road Ahead
With regulators gradually offering more tailored and supportive frameworks for digital assets, Ledn sees an opportunity to set industry standards. Its emphasis on transparency, focused product design, and security-first policies are aligned with the maturing expectations of both regulators and users.
“We're going all in on bitcoin, simplifying our offerings, and prioritizing safety — because that’s what responsible financial infrastructure demands,” the company said.