Crypto lender Ledn announced its decision to discontinue support for Ethereum (ETH) collateralized loans and BTC/ETH savings products starting July 1, 2025, shifting entirely to a Bitcoin-only (BTC) loan model. The company explained that this move is designed to consolidate its Bitcoin-focused business and enhance the protection of customer assets by adopting a fully collateralized Bitcoin lending system.
Ledn's co-founder and CEO, Adam Reeds, emphasized that this strategic shift returns the company to its original roots, aligning more closely with Bitcoin's founding principles. Reeds stated that traditional finance models rely on leveraging client assets to generate interest, which conflicts with Bitcoin users' preferences for asset security and transparency. Consequently, Ledn will also cease lending out customer assets to generate yields, thereby reducing credit risks in its operations.
Founded in the Cayman Islands, Ledn is simplifying its product offering with an exclusive focus on Bitcoin at a time when the crypto lending sector is still recovering from the fallout of the 2022 crypto winter, which saw major lenders like BlockFi, Voyager, Celsius, and Genesis fail. By focusing exclusively on BTC-backed loans and refraining from risky lending practices, Ledn aims to revive the Bitcoin lending market amid more supportive regulatory environments, particularly in the U.S.
