Ledn Reports Over $1.16 Billion in Crypto Loans in H1 2024

Ledn Reports Significant Growth in Crypto Lending

Ledn, a prominent player in the crypto lending sector, announced on Thursday that it facilitated over $1.16 billion in digital asset loans during the first half of 2024. This remarkable achievement underscores the increasing interest and demand for crypto lending services.

Several key events contributed to this surge, including the recent halving of Bitcoin (BTC) and the launch of Ether (ETH) exchange-traded funds (ETFs) in Asia. These developments, according to the company, have played a pivotal role in driving the demand for its services in the second quarter.

Out of the total $1.16 billion in loans, an impressive $969 million was attributed to institutional clients. The approval of spot Bitcoin ETFs in the United States back in January ignited a rally in the cryptocurrency market, significantly boosting institutional adoption. This allowed Ledn to facilitate several hundred million dollars in loans to ETF market makers, reflecting the growing confidence in digital assets.

The platform also noted a notable increase in retail loans, which saw a 29.8% rise from the first to the second quarter. Retail lending surged to $85 million, up from $65.5 million, demonstrating a robust interest from individual investors.

Geographically, North America led the charge in retail lending, with $17.6 million in loans recorded during the second quarter. Latin America followed closely, registering the second-largest number of new retail clients. This growth in crypto adoption in Latin American countries can be attributed to various factors, including economic challenges and political instability, prompting many to explore digital asset options.

CEO Adam Reeds commented on the market dynamics, stating, “While we can’t speak for other crypto lenders, we estimate that Ledn is likely now responsible for more than 50% of the retail loan originations, especially given the fallout from other lenders. This signifies a growing acknowledgment, trust, and increasing demand for digital assets among retail investors.” He further noted that the surge in retail loans is a clear indicator of the ongoing evolution and maturation of the crypto sector, rapidly establishing itself as a viable alternative to traditional finance and banking.

Moreover, the company highlighted a rising trend among clients utilizing digital asset-backed loans for tax planning purposes, as borrowing against crypto assets is generally considered a non-taxable event.

Ledn’s co-founder, Mauricio Di Bartolomeo, shared insights on the overall recovery in the crypto lending landscape, attributing it to the introduction of spot Bitcoin ETFs and the return of assets to creditors from bankrupt entities. He elaborated on these themes during an interview at the Consensus 2024 conference held in Austin, Texas, emphasizing the renewed optimism in the sector.