Guide to the Fall 2026 US Client Entity Migration
What is changing, and why?
Ledn is transitioning all United States clients from our Cayman entity to our US entity.
Your Ledn account will move from Ledn Cayman SEZC Inc. (Ledn Cayman) to Ledn US LLC (Ledn US). Your account will be governed under US laws and regulations.
The migration is scheduled for the fall of 2026.
This change applies to US clients only. Nothing changes for clients in other markets.
Key Milestones
Early September. Individual accounts receive their notification to confirm account details.
Late September. Corporate accounts receive their notification.
October. Your account moves to Ledn US. You will be asked to accept the new US terms and conditions in your Ledn account, and Travel Rule verification begins on transfers of USD $3,000 or more.
October onward. The new products begin rolling out. We will let you know as each one goes live.
What do I need to do?
To comply with US regulations, clients must complete a short confirmation in their app when notified.
Confirm or update key information including your legal name, address, and citizenship.
Confirm or update your Social Security Number (SSN) and tax residency.
Complete automated identity verification if certain personal details have changed.
What happens if I do not confirm my information?
If your information is not confirmed or updated within the required window, certain account functions, such as initiating new trades, taking new loans, or making withdrawals, will be limited until the refresh is completed.
Once completed, access will be restored immediately upon approval.
We strongly encourage all clients to confirm or update their information before the deadline presented in your account to avoid any disruption to your Ledn services.
Does anything change for my existing loans, or for the security of my assets?
Your collateral
No change. The custody and security of the assets you use as loan collateral stay exactly as they are today, including our commitment never to lend your bitcoin out for interest.
Your existing loans
No change to your terms. Loans you opened before the migration keep a legal relationship with Ledn Cayman until they are closed or renewed. Any new loan you take (including any renewal or refinancings) after the migration will originate from Ledn US.
New agreements
After the migration you will be asked to accept new US terms and conditions, governed by US law with US dispute resolution. There is nothing to do before then, and we will share the details ahead of time so you can review them.
What is the Travel Rule, and will it slow down my transfers?
Following our migration to Ledn US ( which is registered with the US Department of the Treasury Financial Crimes Enforcement Network (FinCEN)), Ledn complies with the US Bank Secrecy Act and Travel Rule provisions. The Travel Rule ensures secure information transfer between regulated financial institutions to prevent illicit financial activities.
For transfers of USD $3,000 or more, US rules require us to collect and share certain information, such as your name, with the other platform involved in the transfer. This is similar to how banks share information on wire transfers, and it happens automatically in the background.
Platform-to-Platform Transfers: When transferring funds of $3,000 USD or more between Ledn US and another platform, the system automatically transmits required originator and beneficiary information (such as your full legal name) in the background.
Self-Hosted / Hardware Wallets: When interacting with private, self-hosted wallet addresses for the first time for transactions meeting or exceeding the $3,000 USD threshold, you will be prompted to complete an in-app declaration confirming that you own or control that address
Verification takes seconds to complete in the app. In rare situations where automated checks highlight potential risk, Ledn may request additional verification to secure your assets.
What impact does this have on my tax reporting?
This migration does not change your tax reporting obligations. Your obligation to report taxable transactions, including digital assets, is established under tax law and independent of where your account is held.
From the fall of 2026, Ledn US will report certain activity on your account to the IRS on Form 1099-DA, and you will receive a copy of everything we report. This is a standard part of operating as a US regulated business and applies to every US platform.
Who reports what
Loans from Ledn US. If there is a collateral sale to reduce or close your loan, Ledn US reports that sale to the IRS and sends you a copy.
Your new custody account. Sales & dispositions here are reported by our regulated custody partner rather than by Ledn, and you receive a copy from them.
Your existing Ledn account. Nothing is reported. That account stays with Ledn Cayman, which is outside the scope of Form 1099 reporting.
Reporting is not retroactive. Only transactions that take place after your account moves to Ledn US are reported. Nothing from before the migration date is reported to the IRS.
What is not reported
Taking a loan or repaying one. Borrowing against your bitcoin is not a sale.
Buying digital assets, or depositing, withdrawing and posting collateral. Moving your own assets is not a sale.
Cost basis. Where a sale is reported, your cost basis may not be included. Working out your cost basis and any gain or loss is your responsibility. We encourage you to keep your own records alongside ours.
Ledn does not provide tax advice. Please speak to your own tax advisor about your circumstances.