Ledn Blog
Safeguarding Our Clients' Assets
Learn more about Ledn’s risk management strategy.
Recent market events have taught us that not all digital asset lenders are created equal. At Ledn, we’ve always prioritized safeguarding our clients assets. Since its inception, Ledn has behaved differently than many others in this space due to our strong risk management approach. There are a few key areas that make our approach industry leading:
- We have a dedicated Chief Investment Officer, John Glover, whose extensive experience in risk management sets the foundation for our practices and policies.
- Our risk management fundamentals set the bar for protecting client assets. In current market conditions, our approach aims to ensure that our net equity exceeds our net exposure, and that counterparty lending is matched on both maturity and assets.
- Ledn has increasingly diversified our lending partners over time to manage our risk exposure. When it comes to our borrowing partners, we only work with qualified institutions that have been vetted through a rigorous due diligence process by our risk management team. This strict underwriting process results in a select group of high quality institutions and continual monitoring of each borrowers’ financial position. We have near-daily contact with all of our borrowers at the highest levels within their institutions. This approach has allowed our Ledn team to navigate the recent market turmoil with zero loan losses while continuing to maintain strong relationships with our borrowers.
- We maintain a carefully curated asset offering. Ledn currently supports only Bitcoin & USDC, two of the highest quality and most liquid assets in the industry.
- Ledn has chosen not to engage in DeFi yield farming strategies with our clients’ assets.
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This article is intended for general information and discussion purposes only, it is not an offer, inducement or solicitation of any kind, and is not to be relied upon as constituting legal, financial, investment, tax or other professional advice. This article is not directed to, and the information contained herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to law or regulation or prohibited by any reason whatsoever or that would subject Ledn and/or its affiliates to any registration or licensing requirement. This article is expressly not for distribution or dissemination in, and no services are being marketed or offered to residents of, the European Union, the United Kingdom or the United States of America. A professional advisor should be consulted regarding your specific situation. Digital assets are highly volatile and risky, are not legal tender, and are not backed by the government. The information contained in this publication has been obtained from sources that we believe to be reliable, however we do not represent or warrant that such information is accurate or complete. Past performance and forecasts are not a reliable indicator of future performance. Any opinions or estimates expressed herein are subject to change without notice. We expressly disclaim all liability and all warranties of accuracy, completeness, merchantability or fitness for a particular purpose with respect to this article/communication. For full legal terms and conditions visit https://ledn.io/legal
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