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:
The collateral you post to secure your loan may only be re-posted by Ledn to a trusted institutional USD funding partner, such as a bank, credit fund or other corporate funding partner. Collateral is held securely in segregated on-chain addresses that are verifiable by Ledn, ensuring that the collateral is legally ring-fenced from a funding partner’s assets and protected even in the unlikely bankruptcy of our funding partner. Collateral is held securely in custody throughout the loan. Neither Ledn nor the institutional partner has the right to lend out your collateral to generate interest.
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.