Crypto lending platform Ledn has announced a strategic shift away from Ethereum (ETH), signaling a renewed commitment to its Bitcoin-centric lending services. The company is transitioning to a full custody model for Bitcoin loans, prioritizing security and institutional-grade asset protection.
Ledn Exits Ethereum Market
On May 23, 2025, Ledn revealed that it would no longer offer ETH-based lending or borrowing services, citing regulatory uncertainty and a desire to simplify operations. The decision comes amid growing scrutiny of Ethereum’s DeFi ecosystem and increasing compliance expectations from global regulators.
“We are doubling down on Bitcoin as the most secure and regulatory-compliant digital asset,” said Ledn co-founder Mauricio Di Bartolomeo.
Users holding ETH on Ledn have been advised to withdraw their assets by June 30, 2025, after which all Ethereum-related services will be officially discontinued.
Shift to Full Custody Model for Bitcoin Loans
In tandem with the ETH exit, Ledn is rolling out a new full custody model for Bitcoin-backed loans, replacing the previous third-party custody structure. The company stated that this enhanced model ensures greater transparency, control, and asset protection for borrowers and lenders.
Key upgrades include:
- On-chain verification of BTC collateral
- Institutional-grade cold storage
- Independent third-party audits for reserves
“Security is our top priority. The full custody model removes counterparty risk and offers peace of mind for our clients,” the team emphasized.
This model is designed to align with rising institutional demand for transparent and auditable Bitcoin financial services.
Community and Market Reaction
The announcement received mixed reactions from the crypto community. Bitcoin maximalists welcomed the move, praising Ledn for focusing on the original digital asset and prioritizing security.
However, ETH holders expressed disappointment, noting that Ethereum still dominates the DeFi space in terms of TVL (Total Value Locked) and developer activity.
“Ethereum may be complex, but it powers most of DeFi. Abandoning it is short-sighted,” one user commented on Reddit.
Despite the criticism, Ledn’s decision aligns with its long-standing brand identity as a Bitcoin-first lending platform.
Conclusion: A Back-to-Bitcoin Strategy
With this shift, Ledn is reinforcing its core identity in the Bitcoin ecosystem. The exit from ETH and adoption of a full custody model positions the platform as a secure and compliant solution for long-term Bitcoin holders.
As crypto regulations evolve and investor expectations increase, Ledn is clearly betting on Bitcoin as the most stable and secure digital asset for financial services.