Ledn, a crypto lender, has experienced a significant increase in retail loans, with a surge of 225% year-over-year. The company reported processing $506 million in loan transactions during the third quarter, with $437.7 million going to institutional clients and $68.9 million to retail clients. This growth in retail loans can be attributed to various factors, including the Celsius refinancing program, the launch of crypto ETFs, and a period of reduced market volatility.
In total, Ledn has processed $1.67 billion in loans year-to-date, with $258.7 million allocated to retail users and $1.41 billion to institutions. Since its establishment in 2018, Ledn has facilitated over $6.5 billion in loans across both retail and institutional markets.
The increasing demand for digital asset-backed lending is being driven by the need for alternative financing options among larger players. Tighter monetary policies and intense competition for dollar-based funding are also contributing to this trend. The company noted that the surge in demand during the third quarter followed strong momentum in the second quarter, fueled by significant market events such as the Bitcoin halving and the introduction of Ethereum ETFs in Asia.
Ledn’s Chief Investment Officer, John Glover, highlighted a spike in institutional demand in July, coinciding with the approval of Ethereum ETFs for trading in the US by the Securities and Exchange Commission (SEC). Glover also mentioned that the market is eagerly awaiting the next catalyst to push Bitcoin’s price to a new all-time high, with the upcoming US elections being a potential trigger.
Overall, Ledn’s growth in retail loans reflects the increasing interest in digital asset-backed lending solutions, driven by macroeconomic conditions such as rising inflation, economic uncertainty, and the need for portfolio diversification. The company continues to innovate and expand its services to meet the evolving needs of both retail and institutional clients in the crypto lending space.