We are thrilled to announce that Ledn, your trusted digital asset lender since 2018, now offers loans backed by Ether (ETH), the world's second-largest digital asset by market capitalization.
This is a significant milestone for us. Until now, we’ve only ever offered loans backed by Bitcoin. However, as the industry matures, more digital assets, including Ether, have proved their worth and resilience. The strong market position of ETH is further highlighted by increased interest from institutional investors, with financial powerhouses like BlackRock and Fidelity filing applications with the U.S. Securities and Exchange Commission (SEC) to launch their own ETH-based exchange-traded funds.
What This Means for You
As a Ledn client, you can now readily access liquidity on your ETH assets without selling or staking them. This is made possible while benefiting from our robust risk management. You can open a loan with Ledn, receive USD, USDC, or local fiat currencies, and have your ETH returned upon repayment.
Our ETH-backed loans start at a loan-to-value ratio of 50%, with an annual interest rate beginning at 10.4% (12.4% APR).* This is consistent with our BTC-backed loan program. The loans are available in both Custodied and Standard forms, allowing you to choose how your collateral is managed.
Through our monthly Open Book Report, you can easily understand how your collateral, interest rate, and loan funding are managed. This promotes informed decision-making, empowering you to make the best choices for your financial future.
The Benefits
Rate certainty: Ledn’s ETH-backed loans come with a 12-month fixed interest rate, which sets us apart from the majority of DeFi offerings that are variable due to fluctuations in funding.
Client Service: We pride ourselves on top-notch client service, with a dedicated team available via support@ledn.io to answer questions and provide support in multiple languages.
Simple and User Friendly: You do not need to learn how to interact with protocols to access a Ledn ETH-backed loan. We ensure an easy and straightforward process for our clients.
Tax Efficient**: ETH-backed loans allow you to leverage your ETH to access liquidity while avoiding the capital gains taxes that arise from selling crypto. Plus, the interest you pay on ETH-backed loans may also be tax-deductible.
Coverage and Speed: Similar to our Bitcoin-backed loans, we offer our ETH-backed dollar loans globally, with small minimums, no monthly payments, and flexible repayment options. Loans are typically funded within 24 hours of approval in USD, USDC, or local fiat currencies.
Expanding the Ledn Ecosystem
The launch of our new ETH-backed loans, follows the announcement of the expansion of our Growth Accounts to support ETH, offering you a new opportunity to build your digital wealth via annualized yields of up to 4% APY.
Instead of the complex process of manual ETH staking, you can now earn income on your ETH by simply depositing it into your Growth Accounts, without the lengthy delays associated with staking. Furthermore, ETH Growth Accounts are ring-fenced and never exposed to the risks of Bitcoin or USDC Growth Accounts.
Since 2018, we've processed nearly $5B in Bitcoin-backed loans without losing a single penny or satoshi of client assets. We're confident that our new ETH-backed loan offering will bring the same level of satisfaction and security to our clients.
Join us in celebrating this exciting addition to our services and start taking advantage of our ETH-backed loans today by visiting ledn.io!
* APR varies by jurisdiction ** Not tax advice. Please consult a local tax professional.
