Crypto Lender Ledn Handed Out $1.16B Worth of Loans in First Half of 2024

As a seasoned researcher immersed in the dynamic world of digital finance and cryptocurrencies for the past decade, I’ve witnessed the industry’s evolution from a niche curiosity to a global economic force. Observing Ledn’s impressive growth in the first half of 2024, processing over $1.16 billion in digital asset loans, has been nothing short of astonishing.

In the first half of 2024, the cryptocurrency lending service known as Ledn reportedly facilitated more than a billion dollars’ worth of digital loans, according to statements made on Thursday.

In the second quarter, our company experienced an increase in demand for its services, as reported in a statement, due to factors like the latest bitcoin halving and the debut of ether exchange-traded funds in Asia.

From a total of $1.16 billion, loans to institutional clients represented approximately $969 million, as stated by the lender. The U.S.’s approval of spot bitcoin ETFs in January and the subsequent surge in Bitcoin’s price encouraged institutional adoption, enabling Ledn to facilitate hundreds of millions of dollars in loans to ETF market makers.

As a crypto investor, I noticed an impressive surge of 29.8% in retail loans offered by the platform during the transition from the first quarter to the second one. This significant increase propelled the total lending figure up to a substantial $85 million, as reported by the company.

As a crypto investor, I noticed that during the second quarter, North America took the lead with an impressive $17.6 million in retail loans, according to Ledn. Interestingly, Latin America followed closely behind as the region with the second most onboarded retail clients.

In recent months, there’s been a significant increase in the use of cryptocurrencies across Latin American nations, primarily as a response to financial strains and unstable politics, according to the company.

In simpler terms, the CEO of Ledn stated that due to the decline of other crypto lenders, it’s likely that Ledn now accounts for more than half of all retail loans in this sector. This suggests that more retail investors are recognizing, trusting, and wanting digital assets. The increase in retail loans indicates that the crypto market is maturing quickly, becoming a serious contender alongside traditional finance and banking.

As someone who has been closely following the evolving landscape of finance and technology, I find it intriguing to observe the increasing popularity of digital asset-backed loans among clients for tax purposes. Having dabbled in cryptocurrencies myself, I can attest that borrowing against crypto is generally a non-taxable event, which makes it an attractive option for many individuals and businesses seeking financial solutions without incurring additional taxes. This trend underscores the potential of blockchain technology to reshape traditional finance and create new opportunities for growth and efficiency.

In simple terms, the revival of the crypto lending industry is being driven by the introduction of spot bitcoin ETFs and debtors recovering their assets from bankrupt firms, as stated by Mauricio Di Bartolomeo, a co-founder of Ledn, during an interview with CoinDesk at the Consensus 2024 conference held in Austin, Texas.