Thousands of cryptocurrency investors are becoming more familiar with BlockFi, Celsius Network, Nexo, Gemini Earn, and other similar lending services.
But what about up and coming Ledn, a Canadian based company providing competitive interest rates for Bitcoin and USDC?
If you’re thinking about lending your crypto out for yield, keep reading this review on Ledn before you jump in and loan out your digital assets to this company.
A deeper dive Ledn review than what we could find elsewhere online.
Before we talk about Ledn directly, let’s make sure you are familiar with the “new savings account” idea.
What is the concept of lending your crypto?
Basically it goes like this – if you are tired of low interest rates from Banks and you hold Bitcoin, Ethereum, or stablecoins like USDC and GUSD, you can change that.
There is some opportunity for earning more on your idle crypto if you are a long-term believer.
Platforms like Ledn and BlockFi offer crypto-backed loans with annual percentage rates much like your bank savings account.
However you get paid higher rates from those companies lending your crypto out to market makers.
The benefit? YOU get paid more instead of your bank – which we might add banks have been doing this with your money for decades anyway.
Traditional Savings Rates vs New Crypto Rate Brackets.
At the time of this article, the average bank savings account rate is around .06% on the US Dollar. But for the leading digital version of the US Dollar named USDC – that rate is over 7% – big difference right?
Over time, that percentage difference is HUGE and you lose out to inflation if you are not seeking higher yields on your money.
If you’ve have read enough already and are ready to start, use this link see the latest Ledn rates and get $25.00 in USDC for opening your account.
If you need more information then keep reading…
So, you get it now, higher interest rates are better for you and you have been missing out by storing your cash in a traditional savings account at your bank. Everything sounds great, so what could you be missing?
The obvious Pros, and now the not so obvious Cons.
Yet, there are always pros and cons to every investment and lending crypto is not without risk. Ledn is no different.
The trade-off for those low interest rates at your bank comes with FDIC backed insurance up to $250,000 from the US Federal Government.
You don’t have that same type of backing at Ledn, BlockFi, Gemini Earn and others. ..Or do you?
Each of these crypto lenders are a bit different in how they keep your crypto secure, discussing BlockFi, Celsius Network, Gemini Earn, Nexo and others are for another day and article.
Now let’s finally jump in on what you came here for with our specific Ledn review and why you might want to choose this Canadian based company.
What is Ledn and who is running it?
In their own words, Ledn is a “diverse, Toronto-based team committed to building world-class financial services catered to the crypto-economy.”
Ledn offers a suite of products for you to make the most of your idle digital assets. They have savings products that can provide you with extra yield.
As discussed above, their credit products help you keep your Bitcoin while still having a credit link to access dollars or borrow funds to purchase more – well – Bitcoin!
Founders, Team Members, Advisors, and Investors:
The lending company was founded by Adam J. Reeds and Mauricio Di Bartolomeo.
This dynamic duo has a talented team and is joined with Qiao Wang, Jean-Philippe Vergne, Andrew Clark, Basem Hanna, Anuroop Duggal, and Colin Evran as advisors.
What other big names are partnered or investors with Ledn are Coinbase Ventures. Other investors include CMT Digital, GFC, Hashed, Kingsway Capital, Parafi Capital, SIG, and White Star.
And a big factor is Ledn’s main lending partner, Genesis Capital, which just so happens to be the largest player in the crypto lending space currently.
Not a bad resume at all! The names and experience above is what got Passive Income’d looking at Ledn as a savings account alternative in the first place.
What else do we like about Ledn?
Good customer service, which was very responsive during testing. They have highly competitive crypto interest rates on Bitcoin and USDC.
There are no deposit limits, and they are Canada based which has a strong history of protection laws for consumers.
Ledn also offers an easy to understand website dashboard with no self-issued token that could put the company at risk.
What do we not like about Ledn?
Ledn, if you are reading this, hopefully this topics come up and will be addressed one day.
We didn’t like the limited support for cryptos – with only USDC and Bitcoin being supported (Ethereum at least please!).
The other is no emergency reserves fund to cover some risks like BlockFi or Gemini Earn offers.
An important note is that the emergency reserve funds at BlockFi and Gemini Earn are not publicly discussed on those company websites.
There are some content nuggets out there like the BlockFi CEO’s comment on Twitter regarding such reserves. Or the bet on Gemini Earn being “too big to fail” and having capital reserve requirements.
UPDATE: Ledn now offers “Proof-of-Reserves” so that dislike is somewhat erased. Way to go Ledn!
Other than that, Ledn seems solid and the cons are minimal in comparison to other crypto lending services acting as savings account alternatives.
Ready to get started? Here is the step by step.
- Use this link to open your Ledn account and get $25.00 in USDC for free.
- Use this link to purchase Bitcoin or USDC and transfer to Ledn. Follow the “how to” on each site carefully.
- Once your Ledn account is setup, enable 2FA with Google Authenticator before transferring your crypto.