Ledn, a digital asset lender, has achieved a record quarter in its Bitcoin-backed credit products, as a growing number of investors turn to borrowing against their assets during the ongoing crypto bull market.
In the third quarter, the company originated $392 million in Bitcoin (BTC)-backed loans, bringing the year-to-date total past $1 billion. Since its launch, Ledn has issued over $2.8 billion in loans in more than 100 countries, according to the company.
Additionally, Ledn reported generating around $100 million in annual recurring revenue.
The company offers fully collateralized loans, with Bitcoin collateral secured in custody throughout the lending process. Ledn’s reserves are verified through independent third-party Proof-of-Reserves confirmations.
As previously noted by Cointelegraph, Ledn halted Ether (ETH) lending earlier this year to concentrate solely on its Bitcoin custody and lending operations.
An April report by Galaxy Research highlighted Ledn as one of the three largest centralized finance (CeFi) lenders, alongside Tether and Galaxy. Collectively, these three firms represented almost 89% of the CeFi lending sector and 27% of the overall digital asset lending market at that time.
Related: ‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder
Bitcoin-backed lending grows amid bull market
The rise of Bitcoin above $100,000 has generated a new wealth effect among long-term holders, leading many to opt for borrowing against their Bitcoin instead of selling to avoid capital gains taxes.
A recent estimate from Osler, Hoskin & Harcourt LLP, a Canadian law firm focused on financial regulation and digital assets, projects that the Bitcoin-backed lending market could expand to $45 billion by 2030, growing from around $8.5 billion today.
Institutional interest is gaining momentum as well. Earlier this year, Cantor Fitzgerald executed its first Bitcoin-backed lending transaction in partnership with Maple Finance and FalconX, signaling Wall Street’s increasing involvement in crypto credit markets.
Cantor announced its entry into the Bitcoin-backed lending space in 2024, supported by an initial $2 billion in capital.
Magazine: Review: The Devil Takes Bitcoin, a wild history of Mt. Gox and Silk Road
