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.

On May 23, 2025, crypto lender Ledn confirmed it will stop supporting Ethereum (ETH) and shift entirely to a bitcoin-only lending model.

Crypto lender Ledn is shutting down support for Ethereum (ETH) and pivoting entirely to a bitcoin-only lending model, marking a significant shift in strategy.

The move, which takes effect on July 1, 2025, is part of a broader initiative to simplify services and minimize risk. The company will no longer use client assets to generate yield, instead adopting a full custody model.

This approach implies that users’ bitcoin will either remain in direct custody or with trusted custody partners, removing any intermediaries and lending loops from the process.

The decision also comes in response to rising competition in the BTC-backed loan sector, and it highlights Ledn’s effort to minimize client exposure to lending risks that led to recent failures 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 collapsed due to risky lending practices involving customer deposits.

Ledn’s updated policy aims to avoid such outcomes by eliminating third-party exposure.

The firm stated that 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.

Moreover, the removal of ETH and the shift to full bitcoin custody align with regulatory trends. Ledn appears to be positioning itself for stricter compliance standards as regulators worldwide are increasing scrutiny on digital asset management.

Ledn Bets On Security To Attract Bitcoin Maximalists In Crowded Market

The bitcoin-only model is designed to appeal to users seeking safer custody options in the lending market. As the platform moves away from yield farming and diversified altcoin services, it doubles down on BTC as the primary store of value.

Rising institutional interest in BTC has also pushed for more secure lending options. By focusing solely on Bitcoin, Ledn aims to differentiate from competitors still offering multi-asset services and yield-based products.

This strategy also reflects the growing divide between platforms prioritizing yield and those emphasizing custody and security. As more users become wary of leverage-based lending, Ledn’s model may attract a broader base of Bitcoin-maximalist clients.