Financial institutions are venturing into Bitcoin-backed lending as Bitcoin adoption increases among investment managers and fiat interest rates tighten. Ledn, a Bitcoin-backed lending platform, revealed to Cointelegraph on Sept. 25 that institutional investors are shifting their focus from ETFs to Bitcoin-backed lending. Ledn facilitated $1.16 billion in cryptocurrency loans in the first half of 2024, primarily for financial institutions, with lenders earning over 10% APR. The platform offers various cryptocurrency lending products with interest rates ranging from 11.4% to 13.4%. Bitcoin-backed loans, collateralized with BTC, are denominated in fiat currency, posing credit risk for borrowers. The BTC lending market, currently at $8.5 billion, is projected to reach $45 billion by 2030. Ledn faces competition from platforms like Arch and Salt, as well as traditional financial players like Cantor Fitzgerald entering the institutional BTC financing space. The market benefits from regulated US crypto custodians like Fireblocks, Coinbase Custody Trust, and Fidelity Digital Asset Services. Read more AI-generated news on: https://app.chaingpt.org/news

#BTC