Custodied Loans are bitcoin-backed loans where 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 partners. Collateral is held securely in segregated and verifiable on-chain addresses, 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 our funding partners have the right to lend out your collateral to generate interest.
Benefits of Custodied Loans:
- Your Bitcoin stays secure — Collateral is held in custody with Ledn or our funding partner. Neither Ledn nor our funding partners have the right to lend out the collateral.
- Ring Fencing – Custodied loan collateral is held securely in custody and ring-fenced from our funding partners’ assets. This means collateral is protected even in the unlikely bankruptcy of a funding partner.
- Peace of Mind — You never need to worry about the security of your collateral, especially during times of market volatility.