Crypto lending platform Ledn processed $1.16 billion in digital asset loans during the first half of the year, driven by institutional activity and rising Bitcoin prices.
Points
- Ledn processed $1.16 billion in digital asset loans, mostly driven by institutional activity.
- Institutional loans amounted to $969 million, spurred by Bitcoin ETF approvals and price rallies.
- Ledn’s retail lending division also experienced growth, with $85 million in Q2 loans.
- The company focuses primarily on Bitcoin and has a rigorous due diligence process.
Crypto lending platform Ledn announced that during the first half of this year, it processed $1.16 billion in digital asset loans, primarily driven by institutional activity.
“Institutional loans amounted to $969 million,” Ledn said in a statement Thursday. “This was spurred by the approval of various spot Bitcoin ETFs in the U.S. and the subsequent rally in BTC price. These developments allowed Ledn to process several hundred million in institutional loans to ETF market makers.”
The price of Bitcoin has risen to nearly $65,000 as of Thursday, according to The Block Price Page, from about $44,000 at the beginning of the year. In May, Ledn said it had processed more than $690 million in loans.
While institutional activity accounted for a large portion of Ledn’s loan volume, the company’s retail lending division also experienced growth this year. In Q2, Ledn processed $85 million in retail loans, compared to $65.5 million in Q1.
“This significant lending volume reflects a growing trend of investors taking out Bitcoin and Ethereum-backed loans to access capital to take advantage of investment opportunities while preserving the growth potential of the underlying collateral assets,” Ledn also said in its statement.
Ledn said it vets institutions using a “rigorous due diligence process.” Focusing primarily on Bitcoin, the company managed to survive the carnage of 2022 that dramatically affected other crypto lending firms.
Conclusion
Ledn’s impressive loan volume during the first half of the year highlights the growing demand for digital asset-backed loans, particularly among institutional investors. The rise in Bitcoin prices and the approval of Bitcoin ETFs have contributed to this trend, showcasing the potential of crypto lending as a viable financial service.