Ledn Reports $1.16B in Crypto Loans for First Half of 2024

Significant demand driven by bitcoin halving and ether ETFs launch in Asia.

Crypto lending platform Ledn announced that it processed over $1.16 billion in digital asset loans in the first half of 2024, driven by significant events such as the bitcoin halving and the launch of ether exchange-traded funds (ETFs) in Asia.

Of the total amount, $969 million was loaned to institutional clients. The approval of spot bitcoin ETFs in the U.S. in January spurred institutional adoption, contributing to several hundred million dollars in loans to ETF market makers. The platform also saw a notable 29.8% increase in retail lending, jumping from $65.5 million in Q1 to $85 million in Q2.

North America led the retail lending market in Q2 with $17.6 million, while Latin America followed closely, reflecting the region's growing crypto adoption due to economic pressures and political volatility.

"While we can’t speak for other crypto lenders, we estimate that Ledn is likely now responsible for more than 50% of the retail loan originations given the fallout of other lenders, which signifies the growing acknowledgment, trust, and consequent demand for digital assets from retail investors," CEO Adam Reeds stated. "Overall, we see the surge in retail loans as an indicator of the continued evolution and maturity of the crypto sector as a whole, rapidly establishing it as a fully viable alternative to traditional finance and banking."

The report highlighted a growing trend of clients using digital asset-backed loans for tax purposes, as borrowing against crypto is generally a non-taxable event. The comeback of the crypto lending sector is attributed to the influence of spot bitcoin ETFs and creditors recovering assets from bankrupt companies.

photo source / Blockonome