Crypto Savings Accounts
Ledn is a crypto financial services platform that provides a variety of offerings while specializing in Bitcoin savings accounts. Ledn offers trading for Bitcoin and USDC, as well as savings accounts, Bitcoin-backed loans, a B2X service, and more. Find out if this crypto financial services platform is worth using by reading our complete Ledn review.
- Great interest-earning savings accounts
- Heavily secured and insured
- Flexible interest payments
- Only supports Bitcoin and USDC
- High interest on borrowed fund
What is Ledn?
Ledn is a Toronto-based crypto financial services platform specializing in Bitcoin savings accounts, Bitcoin-backed loans, and ways to earn interest on your digital assets.
Ledn is highly regulated and requires all borrowers to provide identity information for their KYC (Know Your Customer) and AML (Anti-Money Laundering) policies.
If you want to learn everything about Ledn’s services and whether or not they are right for you, stick around for this in-depth Ledn review.
The first huge caveat to get out of the way with Ledn is it only supports Bitcoin and USDC, and all their services work with and around those two assets.
Bearing that in mind, their trading is simply a way to exchange to and from those two crypto assets and fiat currency like USD.
One major advantage Ledn has going for it, however, is they don’t charge any trading or transaction fee, and the price they quote is all you pay.
Ledn Savings Account
The Ledn savings accounts offers ways to earn interest on your digital assets. This is easily the main reason to use their platform.
Though both savings accounts function the same, your Ledn account will have separate sections for viewing and managing Bitcoin and USDC savings accounts.
With 5.25% and 8% interest on your Bitcoin and USDC, respectively, Ledn’s interest rates are on par with or slightly better than some of the leading crypto lending platforms, including BlockFi and Celsius, but not quite as good as platforms like WhiteBit or Nexo.
There’s no minimum balance requirement, no locked-in term, interest accrues daily, and all payouts are added and compounded monthly directly to your Ledn savings account.
Interest payments can also easily be withdrawn as soon as they’re made available as long as you’ve completed your KYC and provided your bank account details.
Ledn Bitcoin-Backed Loans
Taking out a Ledn Bitcoin-backed loan is a great way to get instant dollar loans without having to sell any of your Bitcoin holdings.
A Bitcoin-backed loan can afford you significant tax advantages and is worth considering if want to avoid a large capital gains tax but still need some liquidity.
A Ledn loan is funded within 24 hours of approval, and you can repay loan funds at any time without any penalties or monthly interest payments. You can also choose to receive your loan in either USD or USDC.
As far as loan terms, Ledn runs a 50% loan-to-value ratio with about 8% annual interest and 12 month loan durations.
A 50% loan-to-value ratio is lower than most competitors such as YouHodler, and an 8% interest rate is also a bit high, but neither is outrageous, and the interface makes the whole loan process quite streamlined.
The B2X service Ledn offers Bitcoin loans (margin loans) that allow you to double your Bitcoin position.
Given the collateral is Bitcoin—a volatile asset—and all loans have an interest rate of about 8%, we wouldn’t recommend using B2X unless you really know what you’re doing.
The loan terms are very straightforward, especially with the calculator they include, and loan durations are up to 12 months, though they can be repaid at any time.
If you’re looking for a way to quickly lever up and add more Bitcoin holdings to your account, B2X could be worth checking out—just be cautious of the interest rate and margin calls if/when the value of your Bitcoin increases and or the value of your Bitcoin falls.
Ledn Customer Support
While Ledn doesn’t have an official help center, they have a ‘Learn More’ section where you can find most of—if not all—the information you need, such as helpful FAQs, details on security, their proof of reserves, and their blog.
The FAQ page is filled with detailed answers to questions specifically related to their Bitcoin and USDC savings account, Bitcoin-backed loans, as well as general information about the company and platform.
Ledn’s FAQ section is noticeably more extensive than FAQ sections on other platforms and certainly worthy of checking out if you need any help.
In addition to the FAQ page, Ledn also has a pop-up support tab at the bottom right of the page where you can message support directly.
It would have been nice to see a live chat function added, but at least you know you can speak with a representative for any specific questions, and responses are very timely.
For anyone interested in staying up to date on all the relevant market news, Ledn’s blog is actually a very respectable resource.
Not only does it have an aesthetic design, but the information is thorough, current, and very well organized. It’s truly an excellent place to find important Bitcoin/macro news and insights.
Ledn Security & Proof-of-Reserves
If you want more details on how funds are secured and stored, how your data is managed, and how transactions and addresses are encrypted, the ‘Security’ and ‘Proof-of-Reserves’ tabs are where you will find it.
The information under the Security tab isn’t directly helpful, but transparency on how your data and assets are stored is always appreciated.
Ledn is partnered with the custodian provider BitGo, which cold stores all assets and offers $100 million in insurance, so you know your funds are in good hands.
The Proof-of-Reserves tab also isn’t particularly helpful, but it outlines how users can verify all assets, including their own, are accounted for via an external auditing company, which offers a lot of peace of mind.
Conclusion: Ledn Review
While the Ledn savings account is a great opportunity and service, it certainly draws a line in the sand by only supporting Bitcoin and USDC. However, if those are the only assets you need it to support, you should find their services incredibly useful.
Ledn offers very competitive interest rates on BTC and USDC that rival top competitors within the lending space, so their savings accounts are absolutely worth considering if you want to earn interest on your crypto holdings.
Having no minimum balance requirements is also a huge plus for anyone just getting started with their crypto savings accounts.
As for their loans, while they are incredibly easy to use, the interest rate is higher than you would like to see, and you can only borrow up to half the value of your collateral, which limits the size of your dollar loan compared to what many other platforms running loan-to-value ratios of 80% would offer.
That said, their loans are very flexible and don’t require any monthly interest payments, which is a great feature considering how counterproductive monthly payments on crypto-backed loans can be.
Another great quality is Ledn’s partnership with BitGo to guarantee all funds are safe and accounted for, which really just hammers in the point Ledn’s best use case is an interest-earning savings account.
Ledn’s other services are by no means lacking or not worth your time, but seeking leverage or Bitcoin-backed dollar loans with higher than average interest probably isn’t the reason you would choose to use their platform.
Overall, we would recommend Ledn as a top-tier crypto savings account— provided you are saving in Bitcoin or USDC—and think it would be a great option to consider if saving and earning crypto is your primary goal.