For Custodied Loans, 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) or a Ledn-sponsored and managed financing vehicle, including Lend’s bitcoin-backed asset backed security (ABS).
Collateral is held securely in custody that is verifiable by Ledn, and the collateral is legally ring-fenced from a funding partner’s assets and protected even in the unlikely bankruptcy of our funding partner or legally held in bankruptcy-remote financing vehicles.
Collateral is held securely in custody throughout the loan. Neither Ledn nor the institutional partner nor any financing vehicle has the right to lend out your collateral to generate interest.