Golden Finance reported that Adam Reeds, CEO of Ledn, a company that provides Bitcoin lending services, said that Bitcoin mortgage loans can significantly accelerate the flow of money and capital. Reeds explained that many Bitcoin holders are unwilling to sell BTC to obtain liquidity, and traditional financial institutions generally do not accept Bitcoin as collateral, which results in Bitcoin assets not being effectively utilized. By taking out loans with Bitcoin as collateral, holders can obtain fiat liquidity for business, consumption, real estate, or to purchase more BTC. Reeds said that Bitcoin loans are efficient and borrowers can obtain financing within days, which is a significant advantage compared to the weeks or months of processing time of traditional financial institutions. Furthermore, Reeds believes that Bitcoin as collateral is less risky than real estate or stock loans because there is no GAAP risk. He also pointed out that Bitcoin mortgage loans can help make up for the lack of banking infrastructure in some regions, especially in high-inflation countries such as Argentina and Nigeria, providing these regions with fair financing opportunities.
