Ledn Ends ETH Support, Goes Bitcoin-Only in July
The post Ledn Ends ETH Support, Goes Bitcoin-Only in July appeared on BitcoinEthereumNews.com. Ledn will stop Ethereum support on July 1, 2025, shifting to a bitcoin-only lending and custody model. The platform ends yield-generating services, opting for a 1:1 bitcoin custody system to reduce client risk. The change responds to rising BTC loan demand and regulatory pressure, distancing from altcoins and risky lending. On May 23, 2025, crypto lender Ledn confirmed it will stop supporting Ethereum (ETH) and shift entirely to a bitcoin-only lending model. The move takes effect on July 1, 2025, and comes as part of a broader strategy to simplify services and minimize risk. Ledn stated that it will no longer use client assets to generate yield. Instead, it will adopt a full custody model. This approach means users’ bitcoin will either remain in direct custody or with trusted custody partners, removing intermediaries and lending loops from the process. The decision reflects Ledn’s response to rising competition in the BTC-backed loan sector. It also signals the company’s commitment to reduce client exposure to lending risks that led to past collapses in the crypto lending space. Ledn Overhauls Model: Full Custody for Bitcoin, No More Client Asset Yielding Unlike many centralized crypto lenders, Ledn will now avoid lending out customer assets to generate interest. In 2022, major platforms like Celsius, BlockFi, and Voyager failed due to risky lending practices involving customer deposits. Ledn’s updated policy aims to prevent such outcomes by eliminating third-party exposure. The firm said that under the new model, it will hold 1:1 reserves for all bitcoin used in loans. This structure limits potential default risk and aligns with Bitcoin’s original principles of financial self-custody and transparency. The removal of ETH and the shift to full bitcoin custody also align with regulatory trends. Ledn appears to be positioning itself for stricter compliance standards as regulators worldwide increase scrutiny…
The post Ledn Ends ETH Support, Goes Bitcoin-Only in July appeared on BitcoinEthereumNews.com.
Ledn will stop Ethereum support on July 1, 2025, shifting to a bitcoin-only lending and custody model. The platform ends yield-generating services, opting for a 1:1 bitcoin custody system to reduce client risk. The change responds to rising BTC loan demand and regulatory pressure, distancing from altcoins and risky lending. On May 23, 2025, crypto lender Ledn confirmed it will stop supporting Ethereum (ETH) and shift entirely to a bitcoin-only lending model. The move takes effect on July 1, 2025, and comes as part of a broader strategy to simplify services and minimize risk. Ledn stated that it will no longer use client assets to generate yield. Instead, it will adopt a full custody model. This approach means users’ bitcoin will either remain in direct custody or with trusted custody partners, removing intermediaries and lending loops from the process. The decision reflects Ledn’s response to rising competition in the BTC-backed loan sector. It also signals the company’s commitment to reduce client exposure to lending risks that led to past collapses in the crypto lending space. Ledn Overhauls Model: Full Custody for Bitcoin, No More Client Asset Yielding Unlike many centralized crypto lenders, Ledn will now avoid lending out customer assets to generate interest. In 2022, major platforms like Celsius, BlockFi, and Voyager failed due to risky lending practices involving customer deposits. Ledn’s updated policy aims to prevent such outcomes by eliminating third-party exposure. The firm said that under the new model, it will hold 1:1 reserves for all bitcoin used in loans. This structure limits potential default risk and aligns with Bitcoin’s original principles of financial self-custody and transparency. The removal of ETH and the shift to full bitcoin custody also align with regulatory trends. Ledn appears to be positioning itself for stricter compliance standards as regulators worldwide increase scrutiny…
What's Your Reaction?
