Ledn, a prominent centralized crypto lender, has achieved a major milestone by surpassing $1 billion in Bitcoin-backed loan originations throughout 2025, reflecting a robust rebound in the crypto credit market. The company reported $100 million in annual recurring revenue, highlighting strong investor demand for borrowing against Bitcoin without selling assets.
The firm shifted to a Bitcoin-only lending model earlier in the year, discontinuing Ethereum loans to mitigate risks associated with altcoin volatility. In the third quarter of 2025 alone, Ledn issued $392 million in BTC-backed loans, nearly matching its total originations from the previous year. This strategic move has positioned Ledn as the third-largest centralized lender, trailing only Tether and Galaxy, and it now controls 27% of the digital asset loan market.
Key risk controls include a conservative average loan-to-value ratio of 42.7% and independent proof of reserves attestations, with a total loan book valued at $836.2 million. CEO Adam Reeds described 2025 as a breakout year for Ledn, stating, "Ledn has reached a significant milestone, surpassing $1 billion in Bitcoin-backed loans. This reflects a strong demand for liquidity while allowing investors to retain their asset holdings." CSO Mauricio Di Bartolomeo added that the focus on Bitcoin as sole collateral has enhanced stability and growth amid market dynamics.
The trend underscores a shift in digital asset credit demand, with investors increasingly preferring loans to maintain Bitcoin exposure. Ledn's approach, which includes fully collateralized loans and custody during the loan period, aims to align with financial regulations and avoid pitfalls seen in past liquidity crises, such as those with BlockFi and Celsius in 2022.
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