The collateral you post to secure your loans 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 for the purpose of securing USD to fund the loans. Collateral is held securely in segregated on-chain addresses and 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.
What Are Custodied Loans?
