Currently, Ledn has processed $1.67 billion in loans, of which $258.7 million have been given to regular customers and $1.41 billion to institutions.
A statement released by cryptocurrency lender Ledn on October 21 stated that the company completed $506 million in loan transactions in the third quarter.
The company reports that while loans to retail consumers increased by 225% yearly to $68.9 million, loans to institutional clients totaled $437.7 million. The Celsius refinancing program, the introduction of crypto ETFs, and a period of lower market volatility are all credited with this increase in retail loans.
Currently, Ledn has processed $1.67 billion in loans, of which $258.7 million have been given to regular customers and $1.41 billion to institutions.
Ledn has facilitated approximately $6.5 billion in loans in the retail and institutional markets since its launch in 2018.
What motivates demand?
Ledn explained that as more significant businesses look into alternative financing possibilities, a greater demand for digital asset-backed loans would drive up demand for its services. Tighter monetary policy and intense competition for dollar-based finance influence this increase.
Ledn also pointed out that the second quarter’s robust momentum—driven by noteworthy market events—saw higher demand in the third quarter. These comprised the launch of Ethereum ETFs in Asia and the April Bitcoin halving, which reduced mining incentives from 6.25 BTC to 3.125 BTC.
The company went on to say that the rise in demand was partly caused by macroeconomic factors such as growing inflation, economic uncertainty, and the need for portfolio diversification.
John Glover, CIO of Ledn, pointed out that July saw increased institutional demand. This occurred notably when Ethereum ETFs were authorized for trading in the US by the Securities and Exchange Commission (SEC).
Glover noted that in the meantime, traders are still looking for the next big event that will drive the price of Bitcoin to a record high. He speculated that the next US elections might serve as that catalyst.
He said:
“It seems like a lot of hope is being placed on the November elections to be this catalyst. Institutional borrowing demand has also been fairly consistent with the overall ETF demand, where there was a similar jump in July.”