According to CoinDesk, cryptocurrency lending company Ledn is now offering crypto-backed loans where all assets remain locked up with a qualified custodian. This move comes as the company adapts its centralized finance approach in response to the changing landscape of the digital asset space, following the collapse of non-transparent crypto companies last year. Ledn has processed over $635 million in retail loans backed by Bitcoin and more than $4 billion on the institutional side to date.
The new range of Custodied Loans, which typically involve crypto pledged as collateral being held at BitGo, will be charged at a slightly higher rate. Ledn co-founder Mauricio Di Bartolomeo said in an interview that the collateral must always be held in custody by a qualified custodian, whether it is with BitGo or one of their banking or credit fund partners. This marks the first time this type of loan, offered through a centralized entity with 24-hour disbursements, is available to international customers outside the U.S.
