Dollar Loans

A Dollar Loan from Ledn allows you to borrow funds against your Bitcoin (BTC) without having to sell your digital assets. This means you can keep your BTC intact while accessing liquidity in USD or USDC.

How It Works

Collateral & Loan-to-Value (LTV):
Loans are typically issued at a 50% LTV. For example, if your BTC is worth $10,000, you can borrow up to $5,000.

The minimum loan amount is $500 USD, and clients must have at least $1,000 USD equivalent in BTC to apply.

Interest Rates, Fees & Terms:

• Loans have a standard 12-month term with flexible repayment options.

• No prepayment penalties – you can repay your loan early without additional charges.

• Interest accrues on a daily basis and is only due when the loan is closed.

• A 2% administrative fee applies at loan origination. This fee is not applicable to clients residing in Canada and the United States.

Custodied Loans collateral management method:

All collateral at Ledn is held securely in custody that is verifiable by Ledn. Neither Ledn nor the institutional partner nor any financing vehicle has the right to lend out your collateral to generate interest. To learn more, see our article on custodied loans.

Key Benefits

• Receive funds in USDC, USD or your local fiat currency.

• Quick loan disbursement, typically within 12 hours of applying for your loan, assuming you send your bitcoin collateral to your approved loan promptly. This time may vary outside of business hours, and for fiat loans, depending on your bank.

• No early prepayment penalties and no payments until the loan is closed.

• Flexible repayment in BTC, USDC, or via wire transfer.

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. 

Applying for a Dollar Loan is simple. Just follow these steps:

Step-by-Step Instructions

1. Log into Your Ledn Account
   Navigate to your dashboard at platform.ledn.io 

2. Select the Loan Type
   Choose BTC-backed loan.

3. Fill Out the Application
   Provide the loan amount, select how you’d like to receive the money (fiat, USD, USDC), and submit the loan application. Your loan is always denominated in U.S. dollars, regardless of the disbursement method you choose. 

Loans are normally automatically approved within 5 minutes but some jurisdictions require manual approval, which normally takes less than a day. 

4. Submit Collateral: Once approved, transfer your collateral to the provided wallet address:

• Go to your Loans tab

• Click Send Collateral

• Select the source of the collateral, either your Transaction Account or from an External Source

• Enter the amount and submit.

5. Receive Funds
   Disbursement typically occurs within 12 business hours after your loan application is submitted, assuming you send your bitcoin collateral to your approved loan promptly. Times may vary outside of business hours and depending on your bank for fiat disbursed loans.

Ledn Dollar Loans are available globally; however, availability depends on your country or region due to regulatory reasons.

To check whether Dollar Loans are available in your jurisdiction, please visit our Eligibility Page.

Restricted Regions

Certain jurisdictions currently do not support Dollar Loans due to regulatory limitations. These include, but are not limited to:

• U.S. States: California, Connecticut, Hawaii, Louisiana, Nevada, North Dakota, South Dakota, Tennessee, Vermont, Washington, and Washington D.C.
• Canadian Provinces: New Brunswick, Nova Scotia, Saskatchewan, Quebec
• Other International Regions: For the full details, refer to our Eligibility Page. 

Additional Requirements

In some eligible areas, loans may be subject to minimum principal requirements or confirmation of commercial purpose. Contact Ledn Support for assistance in determining availability in your location.