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

Ledn processed over $1.16 billion in digital asset loans in the first half of the year.

The Bitcoin halving and the launch of ethereum ETFs in Asia caused demand for the company’s services to increase in the second quarter.

The platform saw a 29.8% increase in retail lending in Q2.

Cryptocurrency lending platform Ledn announced on Thursday that it processed over $1.16 billion in digital asset loans in the first half of 2024.

The company said in a statement that recent events such as the Bitcoin {{BTC}} halving and the launch of Ethereum {{ETH}} exchange-traded funds (ETFs) in Asia contributed to the increased demand for the company’s services in the second quarter.

Of the $1.16 billion total, $969 million was in loans to institutional clients, the lender said. The approval of spot bitcoin ETFs in the U.S. in January and the subsequent rally in the world’s largest cryptocurrency spurred that institutional adoption, allowing Ledn to process several hundred million dollars in loans to ETF market makers.

The platform saw a 29.8% increase in retail loans between the first and second quarters, with loans increasing from $65.5 million to $85 million, the company said.

Demographically, North America led the way with $17.6 million in retail loans in the second quarter, while Latin America was the second region with the highest number of engaged retail customers, Ledn said.

The company noted that cryptocurrency usage has increased rapidly in Latin American countries in recent months due to economic pressures, political volatility and other reasons.

“We can’t speak for other crypto lenders, but given the decline of other lenders, we estimate Ledn is now responsible for over 50% of retail lending. This reflects the growing acceptance, trust, and resulting demand for digital assets by retail investors,” CEO Adam Reeds said in an email to CoinDesk. “Overall, we see the increase in retail lending as an indication of the continued evolution and maturity of the crypto sector as a whole, rapidly establishing it as a fully viable alternative to traditional finance and banking.”

The company noted that clients are increasingly inclined to use digital asset-backed loans for tax reasons, as borrowing against cryptocurrency is typically a non-taxable event.

The crypto lending sector is making a comeback thanks to spot bitcoin ETFs and creditors buying back assets from bankrupt companies, Ledn co-founder Mauricio Di Bartolomeo told CoinDesk at the Consensus 2024 conference in Austin, Texas.

Read more: Bitcoin ETFs, Bankruptcy Refunds Give Crypto Lending a Second Chance