What is changing, and why?
Today, a loan can be refinanced or rolled into a new term at maturity even if accrued interest and fees are unpaid. From January 1, 2027, those accrued interest and fees (your “Accrued Fees”) must be cleared before your loan can be renewed or refinanced. As long as your Accrued Fees are paid and your loan is below 65% LTV, your loan will keep renewing into a new 12-month term automatically, just as it does today.
The requirement to be at or below 65% LTV to renew is not new. It already applies today. The only change on January 1, 2027 is that your accrued interest and fees must be cleared.
This covers accrued interest and fees only. You are not required to repay any of your loan principal until you choose to close your loan. That does not change.
As Ledn has grown, we have evolved our funding sources toward large-scale institutional instruments, including the investment-grade, asset-backed securitization we issued earlier this year. Collecting interest and fees as loans renew or refinance aligns our loan book with that funding structure and makes Ledn more resilient, while keeping your experience at renewal seamless.
When does this take effect?
The change applies to any loan that matures or is refinanced on or after January 1, 2027. Loans continue exactly as they do today until then.
If your loan matures before January 1, 2027, it will renew into a new 12-month term under the current rules, and the new requirement would only apply at its following renewal.
Does this mean I now have to make monthly interest payments?
No. This change does not introduce monthly payments, and nothing changes month to month.
Interest is still only settled when your loan reaches maturity and rolls into a new term. This update simply means your accrued interest and fees are cleared at that point so your loan can roll. Keeping your stablecoin Transaction account funded ahead of time is the simplest way to be ready (see below).
Do I have to sell my Bitcoin to pay this?
No. You can cover your accrued interest and fees from a stablecoin balance, by taking a new loan against your collateral, or by USD bank wire, none of which involve selling. A partial sale of BTC only happens as a last-resort backstop if you take no action by maturity, and any of the other methods avoids it entirely.
Do I need to repay any of my loan principal?
No. This applies only to your accrued interest and fees. As today, you are never required to repay principal until you choose to close your loan.
What are my “Accrued Fees”?
Your Accrued Fees are only the interest and fees that have built up on your loan since it was opened or last renewed and remain unpaid when it reaches maturity. They do not include your loan principal. You can see them in your account, and we will flag them ahead of each maturity.
What do I need to do at maturity?
Pay from your stablecoin balance (recommended). The simplest way to be ready is to keep enough USDC or USDT (subject to availability in your jurisdiction) in your Transaction account to cover your Accrued Fees. If you hold enough at maturity, we can automatically apply it so your loan renews.
If you need to add stablecoins to your account, you have the following options:
Deposit stablecoins: fund your Transaction account as you do today.
Purchase stablecoins: use Ledn’s Trade function to add USDC or USDT to your account.
Borrow against new BTC: add collateral and take a new loan, directing the proceeds to your Transaction account to cover your accrued interest and fees.
Borrow against collateral you already hold: At maturity, you can release collateral from an existing loan, up to a maximum of 50% LTV, to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your Accrued Fees.
Make a fiat payment. If you prefer, you may pay in USD by bank wire. Please allow up to 5 business days for us to process your wire, so start well before your maturity date.
Refinancing before maturity. If you choose to refinance your loan ahead of maturity, all of the same options are available to you.
What payment methods are available in my region?
Availability of some payment methods depends on your region, and we are expanding support ahead of the January 1, 2027 effective date.
Most regions: the stablecoin Transaction account and all of the options above will be available.
European Union and US:
For countries and states without stablecoin Transaction account availability today, we expect to offer the stablecoin Transaction account and all four of the options above by the time this policy takes effect. We will let you know as your region is enabled.
You will be able to make a fiat payment via wire.
Canada:
To make this possible in your region, we are enabling stablecoin deposits. This is new: in the 30 days before your loan's maturity date, you will be able to deposit stablecoins to your account, and we will apply that balance at maturity to renew your loan, with nothing more for you to do.
Deposit USDC. You will be able to deposit USDC to your Ledn account to cover your Accrued Fees. Deposits will be enabled 30 days before your loan’s maturity. Depositing enough to cover your Accrued Fees before your maturity date is the simplest way to keep your loan renewing smoothly.
Borrow against collateral you already hold: At maturity, you can release collateral from an existing loan, up to a maximum of 50% LTV, to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your Accrued Fees.
Make a fiat payment: If you prefer, pay in USD by bank wire. Please keep in mind Ledn may require up to 5 business days to process your wire.
If you are not sure what applies to your region, our team can confirm.
When exactly does this need to be paid?
As interest and fees accrue every day, your Accrued Fees are cleared on your loan’s maturity date. If you keep enough stablecoins in your Transaction account, we can apply it automatically at maturity. With the other methods, you will need to act ahead of the maturity date, and a bank wire can take up to 5 business days. That is why we recommend keeping your stablecoin Transaction account funded.
Can I pay my interest before maturity?
Yes. You can make a payment toward your loan at any time, as often as you like, with no penalty. Payments are applied to your accrued interest and fees first, and your principal second, so you can keep your accrued interest low, or clear it entirely, well before your maturity date rather than letting it build up.
What if I have multiple loans?
While applying the payment from your stablecoin account will be automatic, we know some clients will want to consolidate loans to further simplify the process.
If you have multiple loans with Ledn and would like to consolidate them please get in touch with our team at support@ledn.io. To avoid delays, we encourage all clients to do this prior to November 30, 2026.
What happens if I take no action?
If you take no action, there is an automatic backstop. At maturity, if there is an insufficient stablecoin balance in your Transaction account to cover all your Accrued Fees, we will first apply any stablecoin balance towards the Accrued Fees, then sell the minimum amount of BTC needed to pay your remaining Accrued Fees and, if necessary, bring your loan down to 64% LTV, so that it can roll into a new term. We will always give you advance notice beforehand in our loan renewal offer emails. It is a fallback, never a surprise, and any of the options above avoids it entirely.