Digital asset lender Ledn has achieved a remarkable milestone with a record quarter for its Bitcoin-backed lending products, as more individuals opt to borrow against their Bitcoin holdings during the ongoing market surge.
In the third quarter alone, Ledn originated $392 million in Bitcoin (BTC)-secured loans, bringing the total for the year to over $1 billion. Since inception, the firm has issued more than $2.8 billion in loans across more than 100 countries.
Moreover, Ledn announced generating around $100 million in annual recurring revenue.
The company offers fully collateralized loans, with Bitcoin assets protected in custody throughout the borrowing period. Ledn’s reserves are confirmed through independent third-party proof-of-reserves checks.
As noted earlier, Ledn has shifted its focus to Bitcoin loans, having ceased its Ether (ETH) lending service earlier this year.
An April report from Galaxy Research recognized Ledn as one of the top three centralized finance (CeFi) lenders, which included Tether and Galaxy, collectively representing approximately 89% of the CeFi lending market and 27% of the entire digital asset lending market at that time.
Bitcoin-Backed Lending on the Rise
The climb of Bitcoin’s price above $100,000 has fostered a new wealth effect among long-term holders, prompting many to choose borrowing against their holdings instead of selling and facing capital gains taxes.
A recent estimate from Osler, Hoskin & Harcourt LLP, a Canadian law firm focused on financial regulation and digital assets, projects that the Bitcoin-backed lending market could expand to $45 billion by 2030, rising from approximately $8.5 billion at present.
Institutional interest in this sector is also on the upswing. Earlier this year, Cantor Fitzgerald, in collaboration with Maple Finance and FalconX, completed its first Bitcoin-backed lending deal, highlighting the increasing involvement of Wall Street in crypto lending markets.
Cantor revealed plans to enter the Bitcoin-backed lending arena in 2024, supported by an initial $2 billion in funding.
Source: Ledn
_Related: ‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder
