Upcoming Changes at Ledn : A Safer, Simpler Experience

At Ledn, everything we do is guided by three core principles:

1. We listen to our clients — Your feedback helps shape our roadmap.
2. We put client security above all else — We’re always asking how we can strengthen our risk management protocols.
3. We focus on simplicity — We believe the best restaurants have the smallest menus. This means focusing on doing a few things, like bitcoin-backed loans, better than anyone else.

With that in mind, we’re making a set of important changes to improve your Ledn experience. Effective July 1, 2025, we will:

• Remove support for ETH across the platform, including Transaction & Growth accounts and loans, to focus on bitcoin.
• No longer support BTC and ETH Growth accounts to focus on bitcoin-backed loans.
• Transition fully to Custodied Loans as our single loan product, removing support for Standard loans.

These updates reinforce what clients have told us they value most: a safe, simple way to borrow against their bitcoin.

At Ledn, we’ve set the standard for what it means to be a bitcoin-backed lender. Now, we’re raising it.

These updates reflect what we’ve consistently heard from our clients: Make it simpler. Make it safer. Keep doing what you do best — bitcoin-backed loans.

In a time when more companies are entering the space, our focus is sharper than ever: to deliver the safest, simplest, and best borrowing experience in the market.

These changes aren’t just product updates — they are proof points of what sets Ledn apart:

• You asked, we listened: Many clients told us they want a bitcoin-only platform and 100%  focus on the security of your assets.
• Security, always: We’re doubling down on the world-class risk management and execution that our reputation is built on by simplifying our platform and removing any ambiguity about how your bitcoin collateral is treated.
• No trade-offs: With Custodied Loans, you get highly competitive rates and full peace of mind — your bitcoin stays securely held, never lent out.
• Simplicity as a superpower: One clear, streamlined loan experience — easy to understand, easy to use, easy to trust. It’s never been easier to take action, manage your loan, or understand exactly where your bitcoin is.

What this means for you:

• A bitcoin-first and bitcoin-only platform
• One simple, secure way to borrow against your bitcoin
• Competitive rates — without the trade-offs
• A platform built around clarity and transparency
• Complete confidence in where your bitcoin is and how it’s handled

We’re focusing on what we do best: bitcoin-backed lending. Removing ethereum allows us to streamline the platform, reinforce our bitcoin-first identity, and invest more deeply in what our clients rely on us for most — delivering the best bitcoin-backed loans in the game.

• New ETH-backed Loans: You will no longer be able to apply for a new ETH-backed loan as of July 1.
• Existing ETH-backed Loans: You can continue to manage (top up, repay, close) any existing ETH-backed loans. If your loan has not been repaid by the maturity date, your collateral will be sold to repay the loan and any remaining collateral will be returned to your Transaction account.
• ETH Deposits: You can withdraw your ETH at any time.
  • For clients with an active ETH loan as of July 1, you will be allowed to deposit to your ETH Transaction account for the purposes of managing your loan.
  • For clients with no active ETH loans as of July 1, no new deposits will be accepted into your ETH Transaction Account after July 1.

ETH Growth Accounts: Final interest payments will be paid out on July 1 and interest rates will be set to 0%. Your Growth Account balance will then be automatically moved into your Transaction Account at a later date. You will be able to withdraw ETH to your ETH Transaction account at any time.

We’re focusing the entire Ledn platform on what we do best: helping clients unlock liquidity through simple, secure bitcoin-backed loans. Sunsetting BTC and ETH Growth Accounts allows us to keep things clear, focused, and fully aligned with delivering the best borrowing experience in the market. 

• Interest Payments: Your final BTC and/or ETH Growth account interest payment will occur on July 1, 2025.
• Growth Account Balances: You will be able to withdraw to your Transaction account at any time. Your Growth Account balance will then be automatically moved into your Transaction Account at a later date. 

Please note that USDC and USDT Growth accounts will not be affected by these changes if you reside outside the EU. Clients who reside outside the EU with balances in USDC and USDT Growth accounts do not need to take any action for these accounts.

USDT and USDC Growth Accounts form part of how we fund our bitcoin-backed loans. Therefore, interest in these accounts is generated through internal loan funding and not through 3rd party institutional lending. Keeping these accounts online does not affect our commitment to pause 3rd party institutional lending and instead, helps us enhance our core, bitcoin-backed loan product. Please note that there are regional restrictions on where we can offer USDT / USDC Growth Accounts, so these jurisdictional restrictions continue to apply.

This change is being made with the goal to better protect client assets by no longer re-lending loan collateral. 

Moving exclusively to Custodied Loans gives clients a clearer, simpler and more secure borrowing experience, at the most competitive rates in the market.

• New Standard Loans: As of July 1 2025, Ledn will no longer offer new Standard loan originations. Ledn will continue to offer Custodied loans across bitcoin-backed loans and B2X loans, where available.
• Existing Standard Loans: Upon an automatic renewal or refinancing of an existing Standard loan after July 1, 2025, existing Standard loans will be renewed or refinanced as a Custodied loan with the interest rate applicable to Custodied loans at that time. Current loan rates can be found at https://platform.ledn.io/loans.

Custodied Loans are bitcoin-backed loans where 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 partners. Collateral is held securely in segregated and verifiable on-chain addresses, 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 our funding partners have the right to lend out your collateral to generate interest. 

Benefits of Custodied Loans:

• Your Bitcoin stays secure — Collateral is held in custody with Ledn or our funding partner. Neither Ledn nor our funding partners have the right to lend out the collateral.
• Ring Fencing – Custodied loan collateral is held securely in custody and ring-fenced from our funding partners’ assets. This means collateral is protected even in the unlikely bankruptcy of a funding partner.
• Peace of Mind — You never need to worry about the security of your collateral, especially during times of market volatility.

Custodied Loans are designed to give you the same borrowing experience you know and trust, without having to worry about the security of your bitcoin collateral. 

While historically Standard Loans had slightly lower rates due to how collateral was used, we’re working hard to ensure that we can offer Custodied loan rates at highly competitive levels.

You can always see the latest loan rates at platform.ledn.io 

Custodied Loan rates will remain as competitive as Standard Loan rates — but without the risk.