Some cryptocurrency investors earn money by actively trading their coins. Others earn by keeping their coins on deposit and drawing interest.
If you fall into the latter category, Ledn might be for you. In addition to earning interest on held crypto, you can take out a loan against your crypto position without having to liquidate it first. In this article, we'll go over what Ledn has to offer.
- Bitcoin-backed loans that allow you to keep your Bitcoin position
- Earn up to 14% annually on Bitcoin and USDC
- Not a deposit account and does not come with FDIC protection
Crypto savings accounts and loans
Up to 11%
Who Is Ledn?
Ledn is a cryptocurrency digital products platform. It was founded in 2018 and is based in Toronto, Ontario. Its founders are Adam Reeds and Mauricio Di Bartolomeo. The company has raised $3.9 million through a seed round.
"Over the past three years, we've focused on building a simple and secure platform that allows clients to grow their digital wealth through savings and credit products,” Reeds said to Bitcoin Magazine. During the interview, Reeds also said that Ledn plans to roll no-fee trading rolling out in the coming months.
What Do They Offer?
Ledn offers a place to earn a high-interest rate on your Bitcoin and USDC. While Ledn does use terms like savings account, don’t be confused. A Ledn savings account has zero relation to a U.S. savings account. Any funds deposited with Ledn are an investment and assume investment risk.
That being said, if you already invest in crypto, you’re already familiar with how earning interest on crypto works (and the risks involved). In addition to earning interest, you can take out a loan against your Bitcoin and even leverage it up to 2X through Ledn’s B2X service.
Wouldn't it be nice to be a Bitcoin HODLer but also be able to utilize the capital that's locked up in that position? That's exactly what a Ledn Bitcoin-backed loan does. It collateralizes your Bitcoin, so you don't have to liquidate it. As Bitcoin moves up and down, the value of your position will also, just as if the loan wasn't there.
Because your Bitcoin is used as collateral for a loan, it's kept with BitGo, a well-known Bitcoin custodian. Once the loan is repaid, your Bitcoin is returned.
Loan terms are for 12 months. However, you can apply to extend your loan when the original term ends. The interest rate is 12% simple interest per year. The maximum loan-to-value (LTV) ratio is 50%. Once approved, you can receive funds in your account within 24 hours.
if Bitcoin increases in value, any increase is yours to keep. But be aware that if the value of Bitcoin falls significantly, you may be required to deposit more coins to stay below the maximum LTV. This is basically the crypto version of a margin call.
Alternatively, you can pay off some of the loan (in Bitcoin or dollars). You can make payments at any time as there’s no set payment schedule. If you don’t maintain the required LTV, Ledn may sell some of your Bitcoin to bring the LTV back in-line, potentially creating a loss in your Bitcoin position.
B2X - Leverage Up Your Crypto
If you want more leverage, you can use Ledn’s B2X service. It works like their loan product but buys an equivalent amount of crypto to the amount that you deposit.
This doubles your exposure to Bitcoin for up to 12 months. And as with Ledn's basic loan product, B2X loans can repaid at any time during the 12-month term.
The B2X product only works for the investor if Bitcoin goes up. Otherwise, you could quickly receive a margin call to maintain the required LTV.
You can earn up to 6.10% annually on Bitcoin and 11% annually on USDC just by keeping them in your Ledn account. Ledn sends coins in your account to Genesis, which pays out interest on the held coins.
Some of this interest goes back to you (while the rest goes to Ledn).You can withdraw funds at any time. However, there is a $10 fee for each USDC withdrawal.
Are There Any Fees?
Loans are charged a 12% annual interest rate. There is a $10 fee for withdrawing USDC from savings which Ledn says is simply intended to cover the miner's fee for processing the transaction on the Ethereum blockchain.
Varies by currency
Up to 11%
Up to 9.3%
Up to 12%
4.5% to 9.75%
1% to 8%
How Do I Open An Account?
You can visit Ledn's website to sign up. You'll need to verify your identity to comply with Ledn's KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. But the company does not run a credit check on its customers.
Is My Money Safe?
Ledn's website is encrypted and they take precautions to ensure the safety of funds with them. However, any funds deposited with Ledn are investments and have investment risks.
Being a Canadian-based company, there's no FDIC protection or even Canada Deposit Insurance Corporation (CDIC) protection, even on cash deposited in the account. Even if Ledn was in the U.S., it still wouldn't have FDIC protection since it doesn't offer deposit products.
Is It Worth It?
The 12% annual rate that Ledn charges on its Bitcoin-backed loans is higher than what many of its competitors charge. And as for 2X leverage, it's really only for traders who are ok assuming extremely high risk.
If you're looking to earn interest on your assets, however, Ledn pays out a nice rate on Bitcoin and USDC. You'll need to look elsewhere if you're hoping to get paid for any other crypto holdings though. Other companies support a wider variety of currencies on their savings products. Compare your crypto savings account options here >>>
Crypto savings accounts and loans
Min Balance Requirements
Interest Rate On Deposits
$10 (for USDC withdrawals)
Loan Interest Rate
Maximum Loan LTV
Loan Interest Rate
Generally within 24-72 hours
Mobile App Availability
iOS and Android
Customer Service Phone Number
Customer Service Email
Commissions and Fees
Ease of Use
Safety and Security
Ledn is a cryptocurrency platform that allows holders of Bitcoin and USDC to earn interest on their assets or borrow against them.
- Pays solid interest rates on holdings
- No minimum balance to earn interest
- No monthly payments on Bitcoin-backed loans
- Loans come with high interest rates
- No FDIC protection on deposits
- Only supports Bitcoin and USDC
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.