Crypto lender Ledn reported processing $506 million in loan transactions during the third quarter, as stated on Oct. 21 and shared with CryptoSlate.
The firm revealed that $437.7 million in loans were issued to institutional clients, while retail client loans rose by 225% year-over-year to $68.9 million. The surge in retail loans is attributed to the Celsius refinancing program, the launch of crypto ETFs, and decreased market volatility.
Ledn has processed $1.67 billion in loans so far this year, with $258.7 million for retail users and $1.41 billion for institutions.
Since its establishment in 2018, Ledn has facilitated over $6.5 billion in loans across retail and institutional markets.
Factors Driving Demand
Ledn credits the growing need for digital asset-backed lending to drive demand for its services as larger players explore alternative financing solutions due to tighter monetary policies and competition for dollar-based funding.
The company also noted that the third-quarter growth followed a robust second quarter, marked by increased demand due to significant market events such as Bitcoin halving in April and the introduction of Ethereum ETFs in Asia.
Macro-economic conditions like rising inflation, economic uncertainties, and the need for portfolio diversification have also contributed to the surge in demand.
Ledn CIO John Glover highlighted a spike in institutional demand in July, coinciding with the Securities and Exchange Commission’s approval of Ethereum ETFs for US trading.
Glover suggested that the market anticipates the upcoming US elections as a potential catalyst to push Bitcoin’s price to new highs.
“A lot of hope is placed on the November elections to be a catalyst. Institutional borrowing demand correlates with ETF demand, with a similar jump in July,” said Glover.
