Bitcoin-Backed Loans Expected to Decrease Significantly Worldwide, Says Ledn Co-Founder
The Trump administration's supportive stance toward the crypto sector is expected to significantly impact the bitcoin (BTC) lending market over the next four years, as stated by Mauricio Di Bartolomeo, co-founder of Ledn.
- Bitcoin-backed loans may see increased availability and reduced rates, making them competitive with traditional financing options.
- Global access to these loans will be facilitated by bitcoin's universal nature as a digital asset.
- Investors from developing countries could gain access to better financing opportunities.
- Big banks are entering the crypto lending space following the SEC's rescinding of SAB 121, which had restricted crypto custody.
- Current lending rates exceed 12.5%, prompting banks to view this as an attractive investment opportunity.
- Ledn has issued $9 billion in loans since its inception and offers various products including bitcoin loans and yield accounts.
- Ledn capitalized on the Spanish-speaking market while competitors focused on the U.S., positioning itself favorably after market disruptions in 2022.
Di Bartolomeo expresses optimism about Ledn's future role in an expanding market as traditional financial institutions become more involved in crypto lending.