What are Ledn Growth Accounts?
Ledn Growth Accounts allow you to earn interest on your digital assets (USDC and USDT) while maintaining flexibility to transfer assets in and out as needed. A Growth Account is ring-fenced to ensure you are only exposed to the credit risk of the counterparties that generate your interest. This means your assets are isolated from the risks of other Ledn products and services and are not affected in the unlikely event of a Ledn bankruptcy.
How does Ledn generate the interest it pays for Growth Accounts?
Interest for USDC and USDT Growth Accounts is entirely generated by lending to Ledn’s bitcoin-backed retail loan book, which is overcollateralized and has a proven track record with no history of loan losses since inception. This provides a secure and reliable way to earn interest on your assets.
Ledn does not use decentralized finance (DeFi) protocols to generate interest, ensuring that client assets are not exposed to the risks associated with those platforms.
How is interest paid each month for Growth Accounts?
Interest is accrued daily based on your Growth Account balance. Interest is paid out in kind monthly, typically on the first day of the following month. You can see your earned interest directly in your Ledn dashboard.
Is there a minimum balance required?
No, there is no minimum balance required to start earning interest in your Ledn Growth Account.
Where are the Growth Account digital assets stored?
USDC and USDT are used to fund Ledn’s overcollateralized bitcoin-backed loan book. When not being loaned out, excess Growth Account digital assets are held in custody with Ledn’s custodial and/or banking partners for operational purposes, including to process your withdrawals smoothly.
Am I Exposed to Risks from Coins I Don’t Hold?
No. Growth Accounts are ring-fenced by asset type. This means that if you hold a USDC Growth Account, for example, you are not exposed to the credit risks associated with any other Growth Accounts or products.
None of Ledn’s Growth Accounts are exposed to Ledn insolvency risk.
You are always in control and can opt in or out by transferring assets between your Growth and non-interest-bearing Transaction Accounts.
What happened to BTC and ETH Growth accounts?
We have made the decision to simplify our product offerings to focus primarily on the loans that clients love. These changes are about clarity, confidence, and getting back to what sets Ledn apart. If your goals align with safe, transparent bitcoin-backed borrowing, you’ll find a platform now built entirely around that vision - with no compromises.
USDC and USDT Growth accounts will still be supported, as they play an important role as a source of funding for supporting the bitcoin-backed loans we offer.