Introducing Ledn Dual Cryptocurrency Notes (DCNs)
We've got some exciting news to share. Today, we've added Dual Cryptocurrency Notes (DCNs) to our range of products. With DCNs, you can grow your digital wealth in a whole new way.
What are Dual Cryptocurrency Notes (DCNs)?
DCNs offer two main benefits that make them an attractive income stream:
- Higher Returns: They offer returns that are higher than your Ledn BTC or USDC Savings account – typically by 1.5 to 3 times!
- More client control: With DCNs, you automate your view of the price of BTC, allowing you to sell high or buy low at prices you’re happy with. You pick the Strike Price and maturity date, which in turn generates the return for your DCN.
DCNs are easy to get started with – here’s a little bit more about how they can help you grow your wealth.
Sell high or buy low at your desired price with DCNs
DCNs empower you to sell high or buy low at a price that makes you happy - your preferred Strike Price.
The sell high strategy enables you to sell your BTC at your preferred higher price in the future, in exchange for USD.
If you want to buy low - simply choose a desired price at which you would like to make a BTC purchase.
With DCNs, it's all about client control, convenience, and earning a great return along the way!
How does it work?
Choose if you want to sell high or buy low
Sell BTC High, or the BTC to USD pair, allows you to select a future Strike Price at which you’d be happy to sell your BTC for USD. There are two possible outcomes for this transaction:
- If the BTC Price at maturity is at or below the Strike Price, you’ll receive your original BTC amount back, along with your Term Return in BTC.
- If the BTC Price at maturity is above the Strike Price, you’ll receive your BTC amount back converted into USD at the Strike Price, along with your Term Return in BTC.
Buy BTC Low, or the USD to BTC pair, allows you to select a future Strike Price at which you’d be happy to buy BTC, using your USD. There are two possible outcomes for this transaction:
- If the BTC Price at maturity is at or above the Strike Price, you’ll receive your original USD amount back, along with your Term Return in USD.
- If the BTC Price at maturity is below the Strike Price, you’ll receive your USD amount back converted into BTC at the Strike Price, along with your Term Return in USD.
Choose your maturity date and and DCN terms
Once you’ve picked your maturity date, there are a few other terms that you need to know to pick your DCN:
- Annualized Yield: The equivalent effective annual yield if the DCN's term was 1 year. For reference only.
- Term Yield (%): The yield earned over the term of the DCN, expressed as a percentage.
- Term Return: The amount of interest in BTC or USD received upon maturity of the DCN, regardless of the outcome.
- Strike Price: The pre-determined USD price of BTC that will be compared to the BTC price on the maturity date to determine the DCN's outcome. Selected when taking the DCN.
Review and execute your trade
Review your order and confirm.
Your DCN will mature on a chosen date
When your DCN matures, three things happen:
- The BTC Price at maturity is compared against the Strike Price and your outcome is determined based on your Sell High or Buy strategy.
- We’ll deposit the funds into your BTC or USDC* Savings account.
- Regardless of the DCN outcome, we’ll deposit the Term Return into your BTC or USDC* Savings account. The Term Return is paid in the original digital asset you took your DCN in.
* USD funds will be paid or returned in USDC on a 1:1 basis, subject to certain circumstances in which you may receive your funds back in USD.
Before engaging in DCN transactions, it's important to be aware of the potential risks.
As with all yield generating products, there are risks associated with DCNs. For example, if the BTC price at maturity is higher than the strike price on your “Sell High” DCN, then you will miss out on the ability to sell at that higher price. Conversely, if the BTC price at maturity is lower than your strike price on a “Buy Low” DCN, then you are losing out on the ability to buy at that lower price. Additionally, your assets during the term of your DCN are locked and not available until your DCN matures.
Review the Dual Cryptocurrency Note Agreement and its Risk Disclosures to gain a comprehensive understanding. Our priority is your financial well-being, and we want you to make informed decisions every step of the way.