We generate interest paid in BTC and ETH Growth accounts by working with institutional market makers, who pay Ledn in return for borrowing BTC. These institutions use BTC to post as collateral on the exchanges where they provide market-making services, as well as to settle trades where BTC forms one leg of the trade. They do not take a directional view of the markets and are all vetted and constantly monitored by Ledn’s risk management team. We work with a diversified list of borrowers in order to mitigate the impact of any one borrower on our business.
We currently generate interest paid in US stablecoin Growth accounts primarily by funding USDC/T to Ledn’s bitcoin collateralized retail loan book, which has never experienced a loan loss, making it a secure way to earn interest.
We do not expose our client assets to Decentralized Finance Protocols to generate interest.
Learn more about how we generate interest and keep your assets safe, including specific breakdowns, in our monthly Open Book Report at The Ledn Blog.