A Dollar Loan from Ledn allows you to borrow funds against your Bitcoin (BTC) without having to sell your digital assets. This means you can keep your BTC intact while accessing liquidity in USD or USDC.
How It Works
Collateral & Loan-to-Value (LTV):
Loans are typically issued at a 50% LTV. For example, if your BTC is worth $10,000, you can borrow up to $5,000.
The minimum loan amount is $500 USD, and clients must have at least $1,000 USD equivalent in BTC to apply.
Interest Rates, Fees & Terms:
Loans have a standard 12-month term with flexible repayment options.
No prepayment penalties – you can repay your loan early without additional charges.
Interest accrues on a daily basis and is only due when the loan is closed.
A 2% administrative fee applies at loan origination. This fee is not applicable to clients residing in Canada and the United States.
Custodied Loans collateral management method:
All collateral at Ledn is held securely in custody that is verifiable by Ledn. Neither Ledn nor the institutional partner nor any financing vehicle has the right to lend out your collateral to generate interest. To learn more, see our article on custodied loans.
Key Benefits
Receive funds in USDC, USD or your local fiat currency.
Quick loan disbursement, typically within 12 hours of applying for your loan, assuming you send your bitcoin collateral to your approved loan promptly. This time may vary outside of business hours, and for fiat loans, depending on your bank.
No early prepayment penalties and no payments until the loan is closed.
Flexible repayment in BTC, USDC, or via wire transfer.