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.

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:

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. Collateral is held securely in segregated on-chain addresses that are verifiable by Ledn, 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 the institutional partner has the right to lend out your collateral to generate interest.
The interest rate for these loans will be higher than Standard Loans and reflect the fact that the Custodied Loan collateral is ring-fenced from any credit risk related to rehypothecation or lending activities relating to Standard Loans and Ledn Growth accounts.

Standard Loans:
For these loans, Ledn has the right to lend the collateral to institutions to earn interest, which in turn, Ledn uses to lower the interest rate of these Standard loans.
No longer available for new issuance as of July 1, 2025. If you have an existing Standard Loan, it will continue until maturity and renew as a Custodied Loan.

Key Benefits

• Quick loan disbursement, typically within 24 hours of receiving collateral
• No early prepayment penalties and no payments until the loan is closed
• Flexible repayment in BTC, USDC, or via wire transfer

The collateral you post to secure your loans 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 for the purpose of securing USD to fund the loans. Collateral is held securely in segregated on-chain addresses and verifiable by Ledn, 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 the institutional partner 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 anExternal Source
• Enter the amount and submit.

Receive Funds
Disbursement typically occurs within 12 business hours after your collateral is verified. Even though we send the funds quickly, sometimes your bank can take some time to deposit the funds when you choose fiat as your disbursement method.

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.