Crypto lending platform Ledn announced on Monday that it processed an impressive $1.67 billion in loans as of Q3 2024. This record-breaking figure is split between $258.7 million for individual retail users and $1.41 billion for institutional clients.
In Q3 2024 alone, Ledn facilitated loan transactions amounting to over $506 million. Notably, the retail sector experienced a 225% year-over-year growth, driven primarily by the platform’s Celsius refinancing program, the introduction of crypto ETFs, and reduced market volatility.
Institutional Clients Drive Growth
Institutional loans, which constitute the bulk of Ledn’s loan volume, surged to $437.7 million in Q3, reflecting the growing demand for digital asset-backed financing as monetary policies remain tight. This aligns with the broader trend of institutions seeking alternative financing options amid global economic pressures.
Ledn’s loan products include Bitcoin-backed loans, Ether-backed loans, and B2X loans, further supported by the platform’s introduction of a third-party proof-of-reserves standard to enhance operational transparency.
In the first quarter of 2024, Ledn managed over $690 million in loans, with $584 million going to institutional clients and $106 million to retail investors.
Bitcoin Halving and Ethereum ETF Drive Demand
Recent market events, such as the Bitcoin halving and the growing popularity of Ethereum ETFs in Asia, have significantly boosted demand for Ledn’s services. Investors are increasingly leveraging Bitcoin and Ethereum-backed loans to capitalize on emerging investment opportunities.
Since its inception in 2018, Ledn has facilitated over $6.5 billion in loans across both retail and institutional sectors.
Institutional Demand and November Elections
According to John Glover, Ledn’s Chief Investment Officer, institutional demand for crypto loans has spiked since July, partly driven by speculation that the upcoming November elections could act as a catalyst for Bitcoin’s price to surge past its previous highs.
“It seems like a lot of hope is being placed on the November elections to be this catalyst,” Glover said. He also noted that institutional borrowing demand has mirrored the increase in ETF demand, with both seeing a significant jump in July.
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