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Bitcoin ETFs, Bankruptcy Paybacks Have Given Crypto Lending a Second Wind

  • Crypto lending sector is making a comeback thanks to spot bitcoin ETFs and customers getting their assets back from bankrupt companies, Ledn's co-founder said.
  • Bitcoin's rally validated crypto holders' investment thesis.
  • The firm survived the crypto winter by being "boring, slow and safe."
UnmuteHow Venice.ai Differentiates Itself From ChatGPT Through Privacy10:10Napster CEO on Decentralization in the Music Industry01:40U.S. Added 272K Jobs in May; Semler Scientific Buys $17M More Bitcoin00:49How Iggy Azalea's MOTHER Meme Coin Produces Millionaires10:49Citi's Exploration Into Crypto and the MetaverseThe crypto lending sector is recovering from the crypto winter, which blew up several large players, thanks to spot bitcoin (BTC) exchange-traded funds (ETFs) and creditors getting some of their assets back from bankrupt companies."What I'm seeing is that this market has come back roaring," Mauricio Di Bartolomeo, co-founder of crypto lending firm Ledn, told CoinDesk during a recent interview at the Consensus 2024 conference in Austin, Texas. "The market never really left; it [just] got scared."Crypto lending is akin to conventional banking. Customers deposit bitcoin or other cryptocurrencies with a company like Ledn, and earn interest or use that crypto to back loans. The interest paid to depositors is generated by lending their crypto to others and charging them interest.The sector spectacularly imploded in 2022 as crypto prices dove, with firms including Celsius, BlockFi and Genesis filing for bankruptcy.Since then, the digital assets sector has recovered from the bear market downturn. Prices have soared, with the CoinDesk 20 Index up more than 200% since the end of 2022. The rally kicked into high gear late last year after BlackRock and other conventional finance giants applied – successfully – to create bitcoin ETFs in the U.S. According to Ledn's Di Bartolomeo, the positive narrative surrounding these funds is one of the major reasons why users are back in the lending market."Bitcoin has gone up from $20,000 to $70,000 and has become the focus of the political race in the U.S.," he said. "So that means there's more interest, there is real product market for bitcoin as an asset and for bitcoin as a collateral for lending."In fact, Ledn processed more than $690 million in loans in the first quarter, its most successful quarter since its inception in 2018. More than 84% of the processed loans were directed to institutional clients, as demand spiked after bitcoin ETFs were approved in January. Ledn only process loans in bitcoin, Ethereum's ether (ETH) and two stablecoins: USDC and USDT.The institutions participating in this sector now are mostly market makers from both Wall Street and crypto-native companies. "These are the firms that are operating in the ETF markets as well as spot," Di Bartolomeo said. "Some have made their names in crypto, some in TradFi."Bankruptcy paybacksAnother reason users are returning to the lending market is that many of the firms that went bankrupt are starting to give users their money back. Many of them are now returning to the lending market, according to Di Bartolomeo.When asked why this is the case, he explained that for most of these users, their investment thesis – if you hold them long enough, you will get an appreciation of wealth – has been playing out despite the market downturns. These users were "kneecapped" by some bad actors, but as they start to get their assets back, many of the "hardcore users" won't likely sell, he said. Di Bartolomeo added that this is when they turn to the lending market to use their assets for borrowing and lending."What I'm seeing is sort of undisputed proof that people want to hold their bitcoin for the long term and also want to have their cake and eat it, too," he said. A customer could be worth millions in bitcoin, but if they turn to a TradFi bank, they won't recognize their digital assets as collateral for a loan. "This is what we [lenders such as Ledn] bridge [the gap] for these customers," he added.Surviving crypto winterSo how did a centralized lender like Ledn survive the crypto winter when many went bankrupt? The short answer is staying true to the lending and borrowing business fundamentals. Ledn only works with qualified and vetted institutions, doesn't have an asset and liability mismatch and doesn't take part in DeFi yield farming, he said. "That means that if somebody lends to me bitcoin, I lend bitcoin; if somebody lends me a dollar, I lend dollars. There's always a taker. And there's always liquidity," Di Bartolomeo said.He also added that all the lending and borrowing activities are term-matched, meaning if a user lends an asset with seven-day terms, Ledn lends it to another user who can give it back in five, providing liquidity for the assets."People were calling us boring, and we said listen, this is our way: boring, slow and safe," he noted.Read more: Crypto Lenders Caused Crypto Contagion Last Year. How Is the Industry Rebuilding?Edited by Nick Baker.

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    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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