Growth Accounts

What are Ledn Growth Accounts?
Ledn Growth Accounts allow you to earn interest on your digital assets (USDC and USDT) while maintaining flexibility to transfer assets in and out as needed. A Growth Account is ring-fenced to ensure you are only exposed to the credit risk of the counterparties that generate your interest. This means your assets are isolated from the risks of other Ledn products and services and are not affected in the unlikely event of a Ledn bankruptcy.

How does Ledn generate the interest it pays for Growth Accounts?

Interest for USDC and USDT Growth Accounts is entirely generated by lending to Ledn’s bitcoin-backed retail loan book, which is overcollateralized and has a proven track record with no history of loan losses since inception. This provides a secure and reliable way to earn interest on your assets.

Ledn does not use decentralized finance (DeFi) protocols to generate interest, ensuring that client assets are not exposed to the risks associated with those platforms.

How is interest paid each month for Growth Accounts?

Interest is accrued daily based on your Growth Account balance. Interest is paid out in kind monthly, typically on the first day of the following month. You can see your earned interest directly in your Ledn dashboard.

Is there a minimum balance required?

No, there is no minimum balance required to start earning interest in your Ledn Growth Account.

Where are the Growth Account digital assets stored?

USDC and USDT are used to fund Ledn’s overcollateralized bitcoin-backed loan book. When not being loaned out, excess Growth Account digital assets are held in custody with Ledn’s custodial and/or banking partners for operational purposes, including to process your withdrawals smoothly.

Am I Exposed to Risks from Coins I Don’t Hold?

No. Growth Accounts are ring-fenced by asset type. This means that if you hold a USDC Growth Account, for example, you are not exposed to the credit risks associated with any other Growth Accounts or products.

None of Ledn’s Growth Accounts are exposed to Ledn insolvency risk.

You are always in control and can opt in or out by transferring assets between your Growth and non-interest-bearing Transaction Accounts.

What happened to BTC and ETH Growth accounts?

We have made the decision to simplify our product offerings to focus primarily on the loans that clients love. These changes are about clarity, confidence, and getting back to what sets Ledn apart. If your goals align with safe, transparent bitcoin-backed borrowing, you’ll find a platform now built entirely around that vision - with no compromises.

USDC and USDT Growth accounts will still be supported, as they play an important role as a source of funding for supporting the bitcoin-backed loans we offer. 

You can always find the latest interest rates for Ledn Growth Accounts on our Rates and Withdrawal Terms page. Rates vary depending on the digital asset and the balance in your account.

Ledn Growth Accounts are currently available only for USDC and USDT. Please note that these accounts are subject to regional availability and restrictions may apply depending on your country of residence.

How does tiered interest impact rates?
For some assets, Ledn uses a tiered interest structure, meaning different portions of your balance may earn different rates. This approach helps reward larger balances while ensuring everyone earns a base rate on their holdings.

Example for USDC:

• Tier 1 (up to 100,000 USDC): 8.00% APY
• Tier 2 (100,000+ USDC): 10.00% APY

Transferring assets between your Growth and Transaction Accounts is quick and easy:

1. Log in to your Ledn account on the web platform.
2. Navigate to either your Growth or Transaction Account.
3. Select "Earn Interest" to move assets into your Growth Account and start earning interest.
4. Select "Withdraw" to move assets from your Growth Account back to your Transaction Account.
5. Transfers are processed within 15 minutes.

Can I cancel a transfer?

Yes, transfers can be canceled at any time until they are fully processed.

What is tiered interest?

Ledn Growth Accounts may offer tiered interest rates, meaning that different portions of your balance can earn different Annual Percentage Yields (APYs).

The applicable APY depends on the balance held in your Growth Account and the current rates offered by Ledn.

How does tiered interest work?

Interest is calculated by applying the corresponding APY to each portion of your balance based on the applicable tier.

For example, imagine the following illustrative rates:

• Tier 1: First 100,000 USDC earns 5.00% APY.

• Tier 2: Any portion above 100,000 USDC earns 6.00% APY.

If you hold 250,000 USDC:

• The first 100,000 USDC would earn 5.00% APY.

• The remaining 150,000 USDC would earn 6.00% APY.

Based on this example, your total balance would have a blended APY of 5.60%.

Please note: The rates and balance tiers above are examples provided only to illustrate how tiered interest is calculated. They do not represent or guarantee the current rates offered by Ledn.

For current Growth Account rates and applicable balance tiers, please refer to our Rates and Withdrawal Terms.

What is a blended APY?

A blended APY represents the combined effective APY across your total balance when different portions of that balance earn different rates.

Using the example above, although part of the balance earns 5.00% and another part earns 6.00%, the combined blended APY would be 5.60%.

Remember that moving into a higher tier does not necessarily mean that your entire balance earns the higher APY. The applicable rate is applied to the portion of your balance that falls within each tier.

Now that Ledn does not partake in third party institutional lending, this is no longer a risk. The USDC and USDT from the Growth Accounts is only used to fund Ledn’s overcollateralized loan book or for operational purposes. You can rest assured that the Growth Accounts funds are not exposed to the risks that come with third party institutional loans. 

There is currently up to a 15 minute delay for transfers which is the minimum amount of time our technology can support for this type of transfer. 

If you change your mind during the 15 minute transfer time, transfers can be canceled at any time before they are processed.

The Ledn Growth Accounts are available globally to holders of USD and USDT with a few exceptions. You can check your country’s eligibility below.

Ineligible Countries: Afghanistan, Albania, American Samoa, Armenia, Azerbaijan, Bangladesh, Belarus, Benin, Botswana, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, China, Democratic Republic of the Congo, Cuba, Eswatini/Swaziland, Eritrea, Ethiopia, Ghana, Guam, Guinea, Guinea Bissau, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Liberia, Libya, Madagascar, Mali, Mauritania, Mauritius, Mongolia, Morocco, Mozambique, Myanmar, Nepal, Nicaragua, Niger, North Korea, Northern Mariana Islands, Pakistan, Palestinian Territories, Puerto Rico, Republic of the Congo, Réunion, Russia, Rwanda, Senegal, Sierra Leone, Somalia, Sri Lanka, Solomon Islands, South Sudan, Sudan, Syria, Tajikistan, Tanzania, Timor-Leste, Tonga, Trinidad & Tobago, Tunisia, Turkmenistan, Uganda, Ukraine, United States of America, U.S. Minor Outlying Islands, U.S. Virgin Islands, Uzbekistan, Vanuatu, Western Sahara, Yemen, Zambia, Zimbabwe.

In addition, Growth accounts are not available in the EU countries and Switzerland. 

You can also check our Eligibility Page.