Ledn has originated $392 million in Bitcoin-backed loans in Q3 2025, contributing to $2.8 billion in cumulative crypto-backed loans as investors leverage holdings during the bull market without selling assets.
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Ledn’s year-to-date Bitcoin-backed loan originations surpass $1 billion, highlighting strong demand in the digital asset lending sector.
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The platform generates approximately $100 million in annual recurring revenue from fully collateralized lending services.
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Bitcoin collateral is held in secure custody with independent Proof-of-Reserves attestations, serving clients across over 100 countries.
Ledn reports record $392M in Bitcoin-backed loans amid 2025 bull market, totaling $2.8B cumulative. Discover how investors borrow without selling. Explore secure crypto lending options today.
What Are Bitcoin-Backed Loans and How Do They Work with Ledn?
Bitcoin-backed loans allow holders to borrow fiat or stablecoins against their BTC collateral without selling, avoiding capital gains taxes and retaining exposure to price appreciation. Ledn, a leading digital asset lender, facilitates these fully collateralized loans where Bitcoin is securely custodied. In Q3 2025, Ledn originated $392 million in such loans, pushing year-to-date figures past $1 billion and cumulative totals to $2.8 billion since inception.
How Has the Bitcoin-Backed Lending Market Grown in 2025?
The Bitcoin-backed lending market has expanded significantly in 2025, driven by BTC surpassing $100,000 and creating a wealth effect for long-term holders. Ledn’s Q3 performance underscores this trend, with loans issued across more than 100 countries and generating around $100 million in annual recurring revenue. Independent reports from firms like Galaxy Research position Ledn among the top centralized finance lenders, alongside entities such as Tether and Galaxy, collectively dominating nearly 89% of the CeFi market and 27% of the broader digital asset lending space earlier this year. Osler, Hoskin & Harcourt LLP estimates the market could reach $45 billion by 2030, up from $8.5 billion currently. This growth reflects institutional adoption, including deals like Cantor Fitzgerald’s first Bitcoin-backed lending transaction in partnership with Maple Finance and FalconX, supported by $2 billion in initial capital. Ledn’s focus on Bitcoin custody and lending, following the discontinuation of Ether products earlier in 2025, enhances its specialized role. Security remains paramount, with collateral verified via third-party Proof-of-Reserves attestations, ensuring transparency and trust for borrowers worldwide.
Ledn has facilitated $2.8 billion in cumulative crypto-backed loans as holders leverage market gains amid the bull market.
Digital asset lender Ledn has reported a record quarter for its Bitcoin-backed credit products, as more investors chose to borrow against their holdings amid the ongoing crypto bull market.
Source: Ledn
Related: ‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder
Why Is Institutional Interest Accelerating in Bitcoin-Backed Lending?
Bitcoin-backed lending has seen a surge in institutional participation in 2025, as traditional finance integrates with crypto credit markets. Cantor Fitzgerald’s entry, backed by $2 billion, exemplifies Wall Street’s shift, enabling large-scale borrowing against BTC holdings. Ledn’s model supports this by offering collateralized loans that preserve investor positions during volatility. Experts note that avoiding tax events through borrowing rather than selling appeals to high-net-worth individuals and institutions alike. A Galaxy Research analysis highlights how top lenders like Ledn maintain market dominance by prioritizing Bitcoin-focused products, with overcollateralization ratios ensuring lender protection. This institutional momentum is projected to drive further innovation, such as enhanced yield opportunities for collateral holders. Ledn’s co-founder has shared insights on the platform’s origins, emphasizing secure, transparent lending rooted in real-world financial strategies. As BTC’s price momentum continues, these loans provide liquidity without relinquishing long-term assets, aligning with broader market strategies.
Frequently Asked Questions
What Is the Total Volume of Ledn’s Crypto-Backed Loans in 2025?
Ledn has originated over $1 billion in Bitcoin-backed loans year-to-date in 2025, with $392 million added in Q3 alone, contributing to a cumulative $2.8 billion since the company’s launch, serving users in more than 100 countries through secure, collateralized products.
How Does Ledn Ensure Security for Bitcoin-Backed Loans?
Ledn secures Bitcoin-backed loans by holding collateral in custody with strict overcollateralization and conducting independent third-party Proof-of-Reserves attestations, providing verifiable transparency that builds trust for borrowers during the lending process.
Can Bitcoin-Backed Loans Help Avoid Capital Gains Taxes?
Yes, Bitcoin-backed loans allow holders to access liquidity by borrowing against their BTC without selling, thereby deferring capital gains taxes while maintaining ownership and potential upside in a bull market like 2025.
What Role Does Ledn Play in the CeFi Lending Market?
Ledn is one of the largest centralized finance lenders, focusing exclusively on Bitcoin products after discontinuing Ether lending, and it shares market leadership with key players, accounting for a substantial portion of the digital asset lending sector.
Key Takeaways
- Record Growth: Ledn’s Q3 2025 originations of $392 million highlight booming demand for Bitcoin-backed loans in a market exceeding $100,000 per BTC.
- Market Projection: Experts forecast the Bitcoin lending sector to expand to $45 billion by 2030, driven by institutional and retail adoption.
- Secure Borrowing: Utilize Ledn’s collateralized loans to gain liquidity without selling assets, supported by rigorous Proof-of-Reserves verification.
Conclusion
In summary, Ledn’s milestone of $2.8 billion in cumulative Bitcoin-backed loans reflects the maturing Bitcoin-backed lending landscape amid the 2025 bull market, where investors prioritize liquidity over liquidation. With institutional players like Cantor Fitzgerald entering the fray and projections pointing to substantial growth, platforms like Ledn demonstrate robust security and accessibility. As the crypto economy evolves, exploring these Bitcoin-backed loans offers a strategic way to navigate volatility—consider assessing your holdings for potential borrowing opportunities today.
