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Ledn processed over $1.16 billion in digital asset loans in the first half of the year.
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The bitcoin halving and the launch of ether ETFs in Asia drove increased demand for the company’s services in the second quarter.
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The platform saw a 29.8% jump in retail lending in Q2.
Ledn, a crypto lending platform, processed over $1.16 billion in digital asset loans in the first half of 2024, the company said on Thursday.
Events such as the recent bitcoin (BTC) halving and the launch of ether (ETH) exchange-traded funds (ETFs) in Asia contributed to growing demand for the company’s services in the second quarter, it said in a release.
Of the $1.16 billion total, loans to institutional clients accounted for $969 million, the lender said. The approval of spot bitcoin ETFs in the U.S. in January and the subsequent rally in the world’s largest cryptocurrency spurred this institutional adoption and allowed Ledn to process several hundred million dollars in loans to ETF market makers.
The platform saw a 29.8% jump in retail loans between the first and second quarters, with lending rising to $85 million from $65.5 million, the company said.
In terms of demographics, North America led in the second quarter with $17.6m in retail loans, Ledn said, with Latin America accounting for the second-largest number of onboarded retail clients.
Crypto adoption has been booming in Latin American countries in recent months due to economic pressures, political volatility and other reasons, the firm said.
"While we can’t speak for other crypto lenders, we estimate that Ledn is likely now responsible for more than 50% of the retail loan originations given the fall out of the other lenders, which signifies the growing acknowledgement, trust, and consequent demand for digital assets from retail investors," CEO Adam Reeds said in an email to CoinDesk. "Overall, we see the surge in retail loans as an indicator of continued evolution and maturity of the crypto sector as a whole, rapidly establishing it as a fully viable alternative to traditional finance and banking."
The company noted that there is a growing trend of clients using digital asset-backed loans for tax reasons, as borrowing against crypto is normally a non-taxable event.
The crypto lending sector is making a comeback thanks to spot bitcoin ETFs and creditors receiving their assets back from bankrupt companies, Ledn’s co-founder, Mauricio Di Bartolomeo, told CoinDesk in an interview at the Consensus 2024 conference in Austin, Texas.
Read more: Bitcoin ETFs, Bankruptcy Paybacks Have Given Crypto Lending a Second Wind