Quick verdict
Good for
- Attractive daily interest on BTC and USDC
- Loans start as low as US$500
- Withdrawal at any time
Not so great for
- Limited assets supported
- Only accepts BTC as collateral on loans
- Long withdrawal processing time
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Ledn review
A simplified platform for earning yields, trading and loans for investors who own BTC or USDC.
Ledn is a Canada-based crypto lending platform that offers yield accounts and Bitcoin-backed loans. Take a deeper look at Ledn’s features and fees below.
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$0
Deposit fee
Up to 7.5%
Yield rate
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.
What cryptocurrencies can I use with Ledn?
Ledn supports Bitcoin (BTC) and USD Coin (USDC).
How does Ledn work?
Ledn is a crypto lending platform that offers a suite of yield and credit products for digital assets. Through Ledn, users can earn competitive interest from BTC and USDC Savings Accounts, and access dollars or more bitcoin from BTC-backed loans.
BTC and USDC Savings Accounts
The Ledn Savings accounts allow clients to earn up to 5.25% APY on Bitcoin and up to 7.5% APY on USDC holdings. According to the company’s website, its primary institutional borrower is Genesis, which is one of the world’s largest digital asset lenders, with over US$130 billion in trades, loans and transactions to date.
Interest rates
Interest on savings accounts is accrued daily, compounded and paid monthly. Take a look at the APY for BTC and USDC deposits in the table below:
| Digital asset | Balance amount | Annual percentage yield (APY) |
|---|---|---|
| BTC (Tier 1) | 0 to 0.1% | 5.25% |
| BTC (Tier 2) | > 0.1 | 2.00% |
| USD Coin (USDC) | > 0 | 7.50% |
Note: Rates indicated in the table are accurate at the time of writing, 27 May 2022.
B2X loans
For those who want to hold more bitcoin, Ledn also offers a B2X service that allows you to increase your bitcoin holdings through a Ledn bitcoin-backed loan.
Through the B2X service, users can access a dollar loan and purchase an amount of bitcoin equal to their initial holdings. This way, the user will now hold twice as much bitcoin, with the bitcoin-backed loan proceeds used to purchase the bitcoin.
The initial collateral and the newly purchased bitcoin together serve as collateral for the loan.
BTC-backed dollar loans
Ledn’s Dollar Loans work by requiring you to provide enough BTC as collateral to reach a 50% LTV. This means that to get a US$1,000 USD loan, you need to pledge US$2,000 in BTC. The annual interest rate is fixed at 9.9% APR for all loans. There’s no origination fee or any other fees associated with taking out a loan.
Once you’ve set up an account, you can apply for a loan instantly using the Ledn dashboard:
- Enter the loan amount you want, starting at a minimum of US$500. The platform automatically calculates how much BTC you need to deposit to meet the 50% LTV requirement.
- Provide your bank details where you want your loan funds to be deposited.
- Hit the Submit button.
- Wait for your funds to be transferred to your bank.
With Ledn, you don’t make monthly repayments. Instead, you pay back the loan in a lump sum when the 12-month term is up. While you don’t have to worry about making a payment each month, this means you pay more in total interest than with other loans that require monthly payments. However, you can pay off your loan early without penalty to save on interest.
What happens if my BTC drops in value?
Ledn considers anything below 70% LTV to be a healthy ratio. But if the price of BTC drops suddenly, it could push your original 50% LTV loan into the 70% and up range. If this happens, Ledn will request that you deposit more collateral into your wallet or pay down the loan’s principal to get the LTV back to 50%.
If your LTV hits 70% and you fail to add more funds to your account before the LTV on your loan reaches 80%, Ledn will automatically sell off part or all of your BTC to protect its financial interests. Keep an eye on your BTC’s value during market fluctuations while repaying your loan.
Fees and rates
Ledn only charges withdrawal fees for withdrawal requests to external accounts. Transferring digital assets between internal Ledn accounts is free.
Here’s a breakdown of the withdrawal requirements and fees:
| Asset | Minimum withdrawal | Withdrawal limit | Withdrawal fee (external account) |
|---|---|---|---|
| Bitcoin (BTC) | 0.0005 BTC | 100 BTC per 7-day period | Miner fees only |
| USD Coin (USDC) | 35 USDC | 1,000,000 USDC per 7-day period | 35 USDC |
Note: Fees indicated in the table are accurate at the time of writing, 27 May 2022.
Benefits of Ledn
Here are some of the key benefits:
- High APYs. Even with Yield App’s base APY tiers, you could earn more than 100x the interest you’d earn with a traditional savings account.
- Interest paid daily. Interest on savings accounts is accrued daily, compounded and paid monthly.
- No minimum balance required. Ledn does not impose any minimum balance for users to start earning interest.
- No locked-in term. Start earning interest right away and withdraw when you need to.
- Flexible loan terms. Ledn’s loan products can be repaid at any time without penalty. Interest is charged on a daily basis so users only accumulate interest for the days that they have the open loan.
Drawbacks of Ledn
Before applying for a Ledn savings account or loan, make sure to look out for the following caveats:
- Not MAS-regulated. Ledn is based in Canada, which exposes account holders to sudden changes in regulation and potential actions by the Canadian government.
- Long withdrawal processing time. While withdrawal requests are usually processed within 48 business hours after initiating, Ledn may also take up to 7 days to fully process any withdrawal request.
- Bitcoin required for loans. Ledn only accepts BTC as loan collateral.
- Only offers loans with 50% LTV. You can’t get a lower rate for a lower LTV
Is Ledn safe to use?
Crypto deposits, including deposits at Ledn, are not FDIC insured, making them less safe than FDIC-insured deposits at a traditional financial institution. But Ledn may be safer than other lenders in the crypto space for two reasons:
- It offers a proof-of-reserves attestation by a top-25 public accounting firm, Armanino LLP. This means it’s offering proof of funds on hand that match up to client balances.
- It partners with BitGo, a custodian focused on storing digital assets. However, this does not necessarily cover your assets should the company experience a major black swan event.
On the flip side, you’re agreeing to the following risks by keeping your assets on the platform:
- If you get a loan, you’re at risk of losing your BTC collateral if the value falls and your LTV reaches 80% before you have time to add more BTC or pay down the principal balance.
- You’re turning over ownership of your assets to Ledn and trusting the platform to keep your assets safe while in its custody. The safest way to protect your BTC is to keep it on a cold storage hardware wallet like Trezor or Ledger.
Ledn is also based in Canada, which exposes account holders to sudden changes in regulation and potential actions by the Canadian government. Talk to a trusted financial professional if you’re concerned about having financial holdings outside of the US.
Ledn reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | A |
| BBB customer reviews | No reviews |
| Trustpilot Score | 4.7 out of 5 stars, based on 537 customer reviews |
| Customer reviews verified as of | 27 May 2022 |
Ledn gets mostly positive reviews across sites like Trustpilot and Reddit. Positive reviewers on Trustpilot say Ledn is a good place to park money and stay ahead of inflation and offers good security features like 2FA and delays on withdrawals. Negative reviews mention no response from customer support on inquiries and the lack of a website chat feature, which many other platforms offer.
Redditors appear to like the platform for its competitive interest rates on deposits and the B2X loan feature. Others say they like Ledn because it is also audited periodically to provide proof of reserves but advise not to keep a large amount of crypto on any one exchange due to the risk of losses.
How to apply for a Ledn account
Opening a Ledn account only takes a few minutes. You’ll need to complete a know your customer (KYC) registration to access Ledn’s account features, which involves providing your contact information, a government-issued ID and a selfie of you holding your ID.
Eligibility
Meet the following requirements to open a Ledn account:
- At least 18 years of age
- Not a citizen or resident from a prohibited jurisdiction
- Not previously suspended or forbidden from using Ledn services
Required documents
Depending on where you live, you may need to provide some or all of the following pieces of information.
- Government-issued identification document
- Image of you holding your government-issued ID or NRIC
- Proof of address
- Bank account details
How to contact Ledn about my account?
If you have questions or need help with your Ledn account, you have two options to contact customer support:
- Email. Send a message to support@ledn.io
- Website form. Fill out a form on Ledn’s website.
Verdict
Offering proof of reserves and competitive rates on its saving products, Ledn may be a good choice if you’re only looking to earn passive yields on BTC and USDC. Its BTC-backed loan is also easily accessible, but without trading features for other cryptocurrencies, Ledn’s overall functionality is somewhat limited compared to other exchanges that offer a range of earn and borrow products. Read our guide to crypto lending to learn about more options.
Compare Ledn against other crypto savings accounts
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Frequently asked questions
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