Ledn, a leading crypto lending platform, has announced the launch of loans collateralized in ether, marking a significant expansion of its lending offerings. Previously focused on bitcoin-backed loans, Ledn’s decision to support ether-backed loans aims to provide additional financial options for users, particularly those affected by the recent bankruptcy of Celsius.
John Glover, Chief Investment Officer at Ledn, commented on the expansion, stating, “As the crypto industry evolves, we recognize the growing importance and resilience of various digital assets. Ledn is committed to offering innovative solutions to meet the changing needs of our users.”
Ledn’s new product enables users to access liquidity using their ether assets in a tax-efficient manner, allowing them to avoid capital gains taxes associated with selling crypto. Customers can obtain loans in USDC, U.S. dollars, or other fiat currencies, with the ether collateral returned upon repayment.
Similar to Ledn’s bitcoin-backed loans, ether-backed loans start with a conservative loan-to-value ratio of 50%, offering annual interest rates starting from 10.4% (12.4% APR). The loans are available globally, with low minimum requirements, no monthly payments, and flexible repayment options, typically funded within 24 hours.
Ledn offers users the choice between “standard” or “custodied” loans. Standard loans give Ledn the right to lend out the collateral to earn interest, while custodied loans are held in custody with qualified custodians and banks, providing added security for users’ assets.
The introduction of ether-backed loans is particularly aimed at assisting victims of Celsius’ bankruptcy in July 2022. Ledn aims to onboard former Celsius customers seeking to refinance their loans, having already received interest from individuals with outstanding bitcoin and ether-backed loans totaling more than $45 million.
Since its emergence from Chapter 11 bankruptcy in January, Celsius has distributed $3 billion worth of cryptocurrency and fiat to its creditors.
In addition to its lending services, Ledn expanded its crypto savings product in September 2023 to include ether, offering annualized yields of up to 4% APY as an alternative to traditional staking solutions. Ledn has processed nearly $5 billion in bitcoin-backed loans since its inception in 2018.