Ledn Processes $506 Million in Crypto Loans in Q3, Driven by Institutional and Retail Demand
Crypto lender Ledn revealed that it facilitated $506 million in loan transactions during the third quarter, as stated in an Oct. 21 announcement shared with CryptoSlate.
Of the total amount, $437.7 million in loans were extended to institutional clients, while loans to retail clients saw a substantial 225% year-over-year increase, totaling $68.9 million. This surge in retail loans can be attributed to various factors, including the Celsius refinancing program, the launch of crypto ETFs, and a period of reduced market volatility.
Year-to-date, Ledn has processed $1.67 billion in loans, comprising $258.7 million for retail users and $1.41 billion for institutions. Since its establishment in 2018, Ledn has facilitated over $6.5 billion in loans across both retail and institutional markets.
Driving Demand for Crypto Loans
According to Ledn, the increasing demand for its services stems from the growing need for digital asset-backed lending as more significant players explore alternative financing options. This rise is influenced by tighter monetary policies and intense competition for dollar-based funding.
The company also noted that the third quarter’s growth followed a strong momentum in the second quarter, fueled by significant market events such as the Bitcoin halving and the introduction of Ethereum ETFs in Asia. Additionally, macroeconomic conditions like rising inflation, economic uncertainty, and the quest for portfolio diversification have contributed to the surge in demand.
John Glover, Ledn’s Chief Investment Officer, highlighted a spike in institutional demand in July, coinciding with the approval of Ethereum ETFs by the Securities and Exchange Commission (SEC) for trading in the US. He mentioned that the market is eagerly anticipating the next catalyst that could propel Bitcoin’s price to a new all-time high, with the upcoming US elections being a potential trigger.
“It seems like a lot of hope is being placed on the November elections to be this catalyst. Institutional borrowing demand has also been fairly consistent with the overall ETF demand, where there was a similar jump in July,” said Glover.
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Learn more about the latest developments in the crypto lending space with Ledn and its significant impact on both institutional and retail clients.