Ledn offers two options for collateral management:
Standard Loans (Dollar Loans & B2X)
- Clients initiate a loan at 50% LTV, paying an admin fee (as applicable) and interest
- For these loans, Ledn has the right to lend the collateral to institutions to earn interest, which in turn, Ledn uses to lower the interest rate of these Standard loans.
Custodied Loans (Dollar Loans)
- Clients initiate a loan at 50% LTV, paying an admin fee (as applicable) and interest
- For these loans, collateral is posted to an institutional USD funding partner, being a bank and/or credit fund, and held in custody. Ledn does not have the right to lend out collateral to institutions to generate interest. Therefore, the interest rate for these loans will be higher than Standard Loans and reflect the fact that the Custodied Loan collateral is not subject to the credit risk associated with the rehypothecation of Standard Loan collateral.