APR13.4%(Fixed)
Risk score42Medium
Founded in 2018 and based in the Cayman Islands, Ledn offers Bitcoin-backed loans. Its Custodied Loans product keeps collateral securely held in a legally ring-fenced account with no rehypothecation.
Interest rate
Fixed (e.g. 11.4%)
Currency support
USDC, USD, GBP, EUR, CAD, AUD
Fees
2%
Collateral
BTC
LTV
Up to 50%
Loan type
Consumer
Liquidation LTV
80%
Margin call
70%, 75%
KYC
Yes
Total loan issued
N/A
Launch year
2018
Loan duration
12m
Support
Email
Loan value
$1,000 - $1,000,000
Total risk score42Medium
Collateral
0/10
What are you pledging? Native BTC is safest; wrappers, bridges, or paper IOUs add redemption risk.
Native BTC (on-chain UTXO).
Rehypothecation
0/10
Will your BTC be re-used? More hidden leverage → bigger blow-up chance.
Non-rehypothecable collateral.
Custody
4/10
Who can move the coins? Scores quorum design, recovery paths, and (for CeFi) bankruptcy-remote segregation.
Ledn parks borrower BTC at BitGo Trust Company, a regulated, insured qualified custodian. BitGo keeps keys offline in cold-storage vaults and runs segregated, bankruptcy-remote accounts. Ledn states collateral is “never commingled” with other assets and is held in segregated on-chain addresses ring-fenced from any funding-partner bankruptcy.
Security & Governance
4/10
How battle-tested are code and ops? Counts audits, bug-bounty, certs, and hardware key isolation.
Achieved SOC 2 Type II on 10 Sep 2024 and stores client BTC with BitGo Trust, a SOC-2-audited qualified custodian. Help-centre states assets in Transaction accounts are “primarily held in cold storage”, implying only a small operational hot wallet outside the audit scope. Ledn’s own cold-to-hot workflow is merely self-described and not independently audited.
Platform
0/10
Is the chain or bridge robust? Rates consensus security and smart-contract attack surface.
Native Bitcoin script.
Oracle
10/10
How is price fetched and signed? Independence, on-chain proofs, refresh speed, circuit breakers.
Ledn fully controls the oracle, with no public disclosure of its design or data sources.
Liquidation Buffer
4/10
How much room and time before liquidation? Combines LTV gap, grace window, and flash-crash guards.
Ledn provides a 30% liquidation buffer (50% → 80%), warns at 70% and 75%, and liquidates instantly above 80% with no stated grace window.
Rate & Term
2/10
Can interest spike mid-loan? Looks at fixed vs variable APR and funding duration match.
Fixed 12-month coupon; funding stack opaque but rate cannot float mid-term.
Transparency
4/10
Can outsiders verify code & solvency? Rewards open-source + live PoR; punishes black boxes.
Publishes CPA-attested Proof-of-Reserves twice a year; backend code closed-source.
Loan Currency
4/10
What asset do you borrow? Native-BTC best; fiat stables graded on reserves, audits, censorship risk.
Top-tier fiat stable (USDC) or USD wire.
Privacy
7/10
How exposed is your identity? Scores KYC depth, data storage, and breach history.
KYC required for all clients.
History
2/10
Have they proven themselves? Measures years live, audit/OSS footprint, and incident track record.
Clean record since 2018 but limited OSS/audits.
Jurisdiction
4/10
Which legal system backs you? Rates clarity of licensing, creditor rights, and enforcement.
Cayman Islands.