Key Facts
Ledn is a trusted Bitcoin lending platform with competitive interest rates, $100M insurance coverage, and a solid security track record. They're ideal for borrowers seeking a well-balanced loan option with reliable customer service.
Pros
- $100M insurance coverage through qualified custodian BitGo
- Biannual Proof-of-Reserves attestation by independent CPA
- No early repayment penalties — pay back anytime
- Mobile apps for iOS and Android with high ratings
- 2% administrative fee waived for US/Canada customers
- SOC 2 Type II certified with strong internal controls
- Multiple currency options (USD or USDC loans)
Cons
- Full KYC required — not anonymous
- Custodial only — no self-custody options
- Single LTV option (50%) with no lower LTV/rate options
- Limited repayment options compared to some competitors
- Average approval time of ~18 hours (not instant)
- Registered in Cayman Islands (not US-based)
Detailed Review of Ledn Bitcoin Loans
Company Background
Founded in 2018, Ledn is a Canadian-based cryptocurrency financial services company that offers Bitcoin-backed loans, savings accounts, and other crypto-related financial products. The company is registered in the Cayman Islands as a Virtual Asset Service Provider (VASP) with the Cayman Islands Monetary Authority (CIMA) and serves clients in over 120 countries.
Ledn has established itself as a reputable player in the Bitcoin lending space, particularly known for its strong focus on security, regulatory compliance, and transparency practices like regular proof-of-reserves attestations. Unlike some competitors that collapsed during market turmoil in 2022, Ledn has maintained solvency and customer trust through market cycles.
Loan Terms and Conditions
Interest Rates and Fees
Ledn offers Bitcoin-backed loans with interest rates ranging from 9.9% to 12.5% APR. The specific rate depends on your geography and sometimes promotional offers. Ledn charges a 2% administrative fee, but this is typically waived for customers in the US and Canada. There are no early repayment penalties, giving borrowers flexibility to repay their loans at any time.
Loan Size and Collateral Requirements
Loans start at a minimum of $500 with no explicit maximum (loans over $3 million are handled through their Private Wealth service). Ledn uses a fixed 50% LTV (Loan-to-Value) ratio, meaning you'll receive a loan worth half the value of your Bitcoin collateral. This provides a reasonable balance between loan size and protection against market volatility.
Loan Duration and Repayment
Ledn's standard loan term is 12 months, which is renewable. Repayment is flexible, allowing borrowers to repay via wire transfer (for fiat) or stablecoin payment (USDC). Interest is paid throughout the loan term, while principal is typically repaid at the end of the term or when the borrower chooses to close the loan.
Security and Custody
Security is one of Ledn's strongest features. They use qualified custodian BitGo to store collateral with insurance coverage up to $100 million. Ledn offers two types of loans:
- Standard loans with rehypothecation (where Ledn may reuse your collateral)
- Custodied loans with segregated collateral (no rehypothecation)
While both options are custodial (Ledn controls the private keys), the segregated collateral option provides additional security for borrowers concerned about rehypothecation risks.
Ledn implements robust security protocols including:
- SOC 2 Type II certification for internal controls
- Regular third-party security audits
- Biannual Proof-of-Reserves attestations by independent CPAs
- Multi-factor authentication (SMS and authenticator app support)
Liquidation Policies
Ledn has a clearly defined liquidation process:
- Margin call triggered at 70% LTV
- Automatic liquidation at 80% LTV if collateral is not topped up
- No additional liquidation fee (collateral is sold only to cover the loan amount)
The initial 50% LTV provides a substantial buffer against market volatility, requiring approximately a 30% drop in Bitcoin's price before margin calls occur. Borrowers receive notifications via email and app alerts when approaching margin call thresholds.
User Experience and Mobile App
Ledn provides a clean, intuitive user interface through both their web platform and mobile apps for iOS and Android. The mobile apps are particularly well-rated (4.8/5 on iOS with 22K+ ratings) and offer full loan management features including:
- Real-time LTV monitoring
- Collateral top-up functionality
- Interest payment tracking
- Loan renewal options
The loan application process is straightforward but not instant, with approvals taking approximately 18 hours on average. Customer support is available via email and in-app chat, with generally positive feedback about response times and helpfulness.
How to Get a Loan from Ledn
- Create an account on Ledn's platform and complete KYC verification
- Apply for a loan by selecting your desired loan amount (minimum $500)
- Deposit Bitcoin collateral to Ledn's provided address (2x the loan value)
- Wait for verification (typically ~18 hours)
- Receive loan funds via wire transfer (USD) or stablecoin (USDC)
Ledn requires full KYC/AML verification including photo ID and proof of address, so privacy-focused users may prefer other options.
Verdict: Is Ledn Right for You?
Ledn offers a solid Bitcoin-backed loan option with compelling security features and competitive interest rates. They're particularly suited for borrowers who:
- Value strong security and insurance coverage
- Don't mind completing KYC verification
- Prefer a well-established platform with a good track record
- Want a mobile app for managing their loan
- Appreciate transparency features like proof-of-reserves
Borrowers seeking anonymity, non-custodial options, or flexible LTV ratios might prefer alternatives like Lava or Hodl Hodl Lend. However, for those comfortable with a regulated custodial service, Ledn provides an excellent balance of security, usability, and competitive rates.
Overall rating: 4.5/5
How Ledn Compares to Other Providers
| Feature | Ledn | Strike | Lava |
|---|---|---|---|
| Interest Rate | 9.9% - 12.5% APR | 10% - 15% APR | 0% APR (fee-based) |
| Minimum Loan | $500 | $150,000 | $100 |
| LTV Ratio | 50% (fixed) | 50% (fixed) | User-chosen |
| Custody Type | Custodial | 2-of-3 Multisig | Self-custody (DLC) |
| KYC Required | Yes | Yes | No |
| Insurance | Yes ($100M) | No explicit insurance | N/A (self-custodied) |
| Mobile App | Yes (iOS & Android) | No | Yes |
| Approval Time | ~18 hours | 24-48 hours | <5 seconds |
Compared to other providers, Ledn offers a middle ground between the high-security, regulated service of Strike and the privacy-oriented, DeFi approach of Lava. Ledn's lower minimum loan amount makes it accessible to more borrowers than some competitors, while its regulated approach with insurance coverage provides more traditional security than Lava's self-custody model.