Introduction:
Ledn is a digital asset savings and credit platform that allows users to borrow against their Bitcoin collateral without selling it. Founded in 2018, it provides services like Bitcoin-backed loans, where users can borrow cash against their Bitcoin, and also offers savings accounts for Bitcoin and stablecoins. Ledn focuses on institutional-grade financial products for digital assets and is known for being a company that does not issue its own token.
Who is ledn bitcoin loan company?
Ledn is a digital asset financial services company specializing in Bitcoin-backed loans. Known for its conservative risk management and transparency, especially following the 2022 crypto market turmoil, Ledn helps Bitcoin holders access liquidity without selling their assets. This essay provides an overview of
Ledn's services, security measures, and regulatory approach, highlighting the strategies that have allowed it to navigate a volatile industry.
Key aspects of Ledn and its services
**Purpose: **Ledn's core mission is to help Bitcoin holders use their assets without selling them. This offers a tax-efficient way to get cash while remaining exposed to Bitcoin's potential price appreciation.
Loan products: The company offers two primary loan products:
Dollar Loans: Borrow USD, USDC, or your local currency using your Bitcoin as collateral.
**B2X Loans: **This product allows you to double your Bitcoin holdings. Ledn provides a loan against your existing Bitcoin and immediately uses the funds to purchase more Bitcoin for you.
Target audience: Ledn serves a range of customers, including individuals who may be excluded from traditional banking, entrepreneurs, and high-net-worth individuals.
Transparency and security: After many crypto lenders failed during the 2022 crypto market turmoil, Ledn gained a reputation for its conservative risk management and transparency. The company provides "Proof-of-Reserves" attestations by an independent public accountant every six months to verify its assets.
**Additional features: **Beyond its core loan products, Ledn previously offered interest-earning accounts and a trading feature. However, as of May 2025, Ledn has shifted to a fully custodial, Bitcoin-only model, discontinuing these other asset offerings to focus exclusively on its core Bitcoin loan business. In 2022, the company launched a Bitcoin-backed mortgage product in some regions.
Key facts
Founded: 2018
Founders: Adam Reeds and Mauricio Di Bartolomeo
Track record: Ledn has never lost client assets and survived the market turmoil that took down many competitors in 2022.
Funding: The company has raised significant capital from investors such as Coinbase Ventures and Kingsway Capital.
How does Ledn ensure collateral safety?
Ledn ensures the safety of Bitcoin collateral through a combination of institutional custodial practices, conservative risk management, and transparency measures. This approach has been proven effective through periods of high market volatility.
Custodial practices
Secure storage: Ledn primarily holds client assets in cold storage, which keeps digital assets offline and protected from cyber threats.
Third-party custodian: The company partners with institutional-grade digital asset custodians, like BitGo, for secure storage. These firms specialize in security protocols, such as multi-signature wallets, to protect assets.
**Collateral is not rehypothecated: **For its "Custodied Loans" product, Ledn pledges that the collateral is not lent out to generate interest. Instead, it is held securely throughout the loan term.
**"Ring-fenced" collateral: **If Ledn uses a funding partner for a loan, the collateral is legally and securely "ring-fenced." This means it is held in segregated, on-chain addresses, protecting it from the funding partner's assets in the event of bankruptcy.
Risk management
Over-collateralization: Ledn requires all loans to be over-collateralized, with the Loan-to-Value (LTV) ratio typically starting at 50%. This creates a significant buffer against price drops in Bitcoin.
**Automated alerts and margin calls: **If the price of Bitcoin drops and the LTV increases, Ledn sends automated email alerts to borrowers at key thresholds (e.g., 70% and 75%). This gives borrowers options to avoid liquidation, such as adding more collateral.
Auto-top-up feature: Borrowers can enable an auto-top-up feature, which automatically allocates additional funds to their loan to maintain a healthy LTV during periods of high volatility.
Liquidation protocols: If a borrower does not act on a margin call and the LTV reaches 80%, Ledn will automatically sell just enough of the collateral to bring the loan back into a healthy range.
Transparency and accountability
**Proof of Reserves (PoR) attestations: **Ledn pioneered and regularly undergoes PoR attestations by an independent public accounting firm. This process verifies that the company holds enough assets to cover all client balances.
**Client verification: **During a PoR attestation, Ledn provides each client with a unique, anonymized ID. This allows clients to independently verify that their balance was included in the report.
**Open Book Reports: **The company publishes regular Open Book Reports, providing clients with detailed information on how their assets are managed and outlining Ledn's risk management policies.
Has Ledn had a security breach?
No, Ledn has no history of security breaches that have resulted in the loss of client funds or collateral. The company's conservative approach and robust protocols allowed it to navigate the 2022 crypto market turmoil successfully.
Ledn's security posture is supported by several practices:
Third-party custodians: Ledn partners with established and highly secure custodians like BitGo for storing digital assets, which are primarily kept in offline cold storage.
Protection against partner vulnerabilities: In a 2022 incident, Ledn's marketing data was targeted during a breach of a third-party service provider, HubSpot. However, Ledn's segregated access ensured that no client funds or sensitive data were compromised.
**Mandatory two-factor authentication (2FA): **Ledn requires 2FA for all users to secure their accounts and protect sensitive actions on the platform.
**Independent audits: **The company regularly undergoes Proof-of-Reserves (PoR) attestations to verify that all client assets are properly accounted for.
**Non-rehypothecation of collateral: **As of May 2025, Ledn shifted to a fully custodial, Bitcoin-only model, ensuring client collateral is never lent out.
Has Ledn had issues with regulators?
Ledn's relationship with regulators has been proactive and generally positive, characterized by a willingness to adapt its business model to align with regulatory demands.
A summary of Ledn's interactions with regulators:
Voluntary registration and compliance: Ledn has pursued regulatory registration in multiple jurisdictions, including Canada, the Cayman Islands, and Spain.
Ceasing products in response to regulation: Ledn voluntarily stopped offering certain products, like Bitcoin savings accounts in Canada, to align with regulatory expectations and avoid enforcement action.
Proactive risk management: Following the 2022 crypto market turmoil, Ledn adapted its practices to remove third-party credit risk, culminating in its move to a Bitcoin-only, fully custodial model in 2025.
Overcoming "debanking": In 2020, Ledn and other crypto firms faced "debanking," where banks severed ties due to heightened scrutiny of the crypto industry. Ledn navigated this challenge by diversifying its banking partners and reinforcing regulatory compliance.
No public record of fines or penalties: There is no public record of Ledn receiving cease-and-desist orders, fines, or other penalties from financial regulators, in contrast to many other crypto lenders that faced enforcement actions.
Conclusion
Ledn’s approach to the digital asset lending space is defined by its conservative, Bitcoin-focused philosophy and commitment to transparency. By prioritizing security through institutional custody, non-rehypothecation, and robust risk management strategies, Ledn has successfully navigated market volatility and regulatory uncertainty. This focus on customer protection, verified by independent attestations and backed by its long-term track record, sets Ledn apart in an industry often characterized by risk.