In today’s fast-evolving financial landscape, holding bitcoin doesn’t mean you have to choose between keeping your digital assets and accessing liquidity. With the rise of crypto-backed lending, you can now unlock the value of your BTC without selling it. Whether you need short-term capital, want to leverage your holdings, or are looking for a tax-efficient way to access funds, Bitcoin-backed loans offer a smart, secure solution.
👉 Discover how to unlock the value of your crypto holdings today.
How Bitcoin-Backed Loans Work
A Bitcoin-backed loan allows you to use your BTC as collateral to borrow fiat currency—typically in USD—or stablecoins like USDC. This means you retain full ownership of your bitcoin while gaining immediate access to cash for investments, emergencies, or personal expenses.
The process is straightforward:
- You deposit your BTC as collateral.
- Once approved, you receive a loan in your preferred disbursement currency.
- Repay the loan (plus interest) over time.
- Upon repayment, your bitcoin is released back to you.
Because you're not selling your BTC, this transaction usually does not trigger a taxable event—making it an attractive option for long-term holders.
Starting annual interest rates: 10.4%*
Terms and rates may vary based on loan size, loan-to-value ratio, and market conditions.
Introducing B2X: Double Your Bitcoin Strategy
For those looking to grow their crypto portfolio strategically, B2X offers a unique one-stop solution that combines a Bitcoin-backed loan with an automatic BTC purchase. Here's how it works:
- Take out a loan using your existing BTC as collateral.
- Use the borrowed funds to buy more bitcoin.
- Hold both your original and newly acquired BTC, effectively increasing your exposure.
This innovative approach allows users to amplify their Bitcoin holdings without upfront capital, leveraging market confidence in a disciplined way. It’s ideal for investors who believe in Bitcoin’s long-term appreciation but want to optimize their position now.
👉 Learn how strategic borrowing can boost your crypto portfolio.
Secure Collateral Management You Can Trust
One of the biggest concerns with crypto lending is asset safety. At Ledn, collateral protection is built into every layer of the system.
Custodied Collateral Model
- Your BTC is held in custody by Ledn or a trusted institutional partner.
- Collateral is not lent out to third parties to generate yield.
- It may only be re-posted to a vetted USD funding partner under strict legal ring-fencing agreements.
- Assets are fully segregated from other products like Growth accounts or standard loans, eliminating cross-product credit risk.
This custodied model ensures that your collateral remains secure, transparent, and exclusively tied to your loan obligation.
Why Choose Ledn for Crypto-Backed Lending?
Not all lending platforms are created equal. Ledn stands out through its commitment to accessibility, speed, transparency, and resilience.
Easy Access to Funds
You only need $1,000 USD equivalent in BTC to qualify—no credit checks required. Approval is automatic based on collateral value, making the process inclusive and efficient.
Fast & Flexible Loan Terms
- Loans typically funded within 24 hours of approval.
- No mandatory monthly payments.
- Repay at any time—without penalties—giving you full control over your financial timeline.
Verified Security & Transparency
Ledn was the first digital asset lender in the industry to complete a Proof-of-Reserves Attestation conducted by a certified public accountant. This means:
- Every client can verify their balance is accounted for in periodic reports.
- Balances are cryptographically hashed for privacy and accuracy.
- Independent audits confirm that assets match liabilities.
This level of transparency builds trust in an industry where accountability matters more than ever.
Step-by-Step: Applying for a Bitcoin-Backed Loan
Getting started is simple:
Log in to your Ledn account.
- Navigate to the “Loans” tab in your dashboard.
Choose your loan type.
- Select between Standard or Custodied options based on your security preferences.
Enter loan details.
- Specify loan amount, disbursement currency (USD, USDC, or local currency), and confirm collateral amount.
Send BTC collateral.
- Transfer the required BTC to your loan wallet.
Receive funds.
- Once confirmed, your loan is funded and available for use.
You’ll receive email updates throughout the process and can monitor your loan status anytime through your account.
Confidence You Can Count On: Asset Protection at Ledn
Security isn’t just a feature—it’s foundational.
Industry-Leading Security Practices
- Cold Storage: The majority of assets are stored offline, minimizing exposure to cyber threats.
- SOC 2 Type 2 Compliance: Rigorous third-party audits validate our operational and security controls.
Transparent Risk Oversight
- Proof-of-Reserves Attestations: Published biannually to verify asset backing.
- Open Book Reports: Monthly insights into asset management strategies, yield generation, and risk frameworks.
Proven Resilience
Ledn successfully navigated the turbulent 2022 crypto credit crisis—a testament to disciplined risk management and sustainable operations. While other platforms collapsed, Ledn emerged stronger, reinforcing its reputation as a reliable player in decentralized finance.
Frequently Asked Questions (FAQ)
What are crypto-backed loans?
Crypto-backed loans allow you to borrow fiat or stablecoins using your cryptocurrency—like Bitcoin—as collateral. This provides liquidity without requiring you to sell your assets.
Is there a minimum loan amount?
Yes. You need at least $1,000 USD worth of BTC as collateral to qualify for a loan.
Can I repay my loan early?
Absolutely. There are no prepayment penalties—you can settle your balance at any time.
In what currencies can I receive my loan?
Loans are denominated in USD but can be disbursed in USD, USDC, or select local currencies depending on availability.
Are these loans available worldwide?
Ledn offers services in most countries, though some regions have restrictions due to regulatory requirements. Check eligibility directly on the platform.
How is my collateral protected?
Your BTC is held securely in cold storage, legally ring-fenced, and never used for third-party lending. Regular audits ensure full reserve backing.
👉 Start leveraging your crypto today with a secure, transparent lending platform.
By combining ease of access with institutional-grade security and innovative features like B2X, Ledn empowers Bitcoin holders to make smarter financial decisions—without compromise. Whether you're bridging short-term needs or building long-term wealth, crypto-backed loans are a powerful tool in the modern investor’s toolkit.