When Bitcoin first emerged, it was hailed as “digital cash”, a currency meant to replace banks and empower individuals. However, in 2025, many companies show that Bitcoin can serve another role entirely: as collateral for a new financial system.
One of the pioneers of this model is Ledn, a company born in Canada, that has quietly become one of the most trusted names in Bitcoin-backed lending.
Now operating across over 100 countries and as October 27th, 2025, Ledn surpassed$1 billion in Bitcoin-backed loan originations, Ledn is helping users borrow against their Bitcoin holdings rather than sell them.
The result, says CEO Adam Reeds, is a bridge between traditional finance and the crypto economy, one designed for a global audience that banks have long overlooked.
During the Plan ₿ Forum in Lugano, CCN’s Dr. Lorena Nessi sat down with Ledn CEO Adam Reeds to discuss how the company is shaping access to capital through Bitcoin, navigating the post-FTX landscape, and building financial tools for users often excluded from the traditional system.
From FTX Fallout to Focused Growth
Reeds stated the company’s recent success is built on focus and discipline; hard-earned lessons from the chaotic years following the 2022 crypto market downturn.
“After recovering from the FTX disaster, we decided to focus,” he explains. “The idea of lending and borrowing against your Bitcoin wouldn’t go away. It’s still our clients’ most important financial asset.”
Instead of expanding into risky new products, Ledn doubled down on its original mission: helping people access liquidity without selling their Bitcoin.
“We’ve been refining one core product for eight years now,” says Reeds. “That discipline has allowed us to build a simple, transparent, and clearly needed product.”
Today, Ledn generates over $100 million in annual recurring revenue, and its risk management framework, once considered conservative, has become an industry benchmark.
Why Borrow Against Bitcoin?
At first glance, borrowing against Bitcoin might sound counterintuitive. Why take a loan when you already own a valuable asset? Reeds argues the logic is simple: Bitcoin is increasingly seen as a long-term store of value, not a short-term spending tool.
He draws a comparison to traditional assets. “When you buy a home, you don’t sell it to pay for coffee,” he says. “Wealthy people don’t sell their core assets; they borrow against them. The same narrative and mentality are coming to the Bitcoin space.”
“I obviously don’t want to sell my bitcoin to buy coffee, but I think that’s where the lending infrastructure helps.” “You should be paying for coffee with USDT, not with BTC”, he clarifies.
In Ledn’s model, users deposit Bitcoin as collateral and receive a loan in stablecoins or dollars. When the loan is repaid, they get their Bitcoin back, ideally after it’s appreciated. The approach allows users to access liquidity while maintaining exposure to Bitcoin’s upside.
Reeds believes this shift in mindset is one of crypto’s most significant cultural developments.
“Bitcoin has gone from being seen as speculative to being seen as collateral,” he says. “That’s a fundamental transformation.”
Building Real Financial Inclusion
Ledn’s growth has been robust in Latin America, where Reeds spends much of his time. Nearly 40% of Ledn’s loans now originate in the region, a sign of Bitcoin’s popularity and the weaknesses of local financial systems.
“In many places, banks are for the rich,” Reeds says. “People either can’t get approved or the process takes months. For some clients, Ledn is the first loan they’ve ever been approved for.”
That accessibility has required careful design. The company introduced a $500 minimum loan amount to make the product usable for smaller savers, which still represents a significant sum in many emerging markets.
“You have to make the product affordable, both in cost and complexity,” Reeds says. “That means building in processes and technology that allows us to offer that at very low cost.
He explains that Ledn’s system is designed so that processing a $500 loan is just as efficient as handling a $5 million one, making the platform scalable and accessible to users of all income levels.
Ledn’s focus on simplicity and mobile access has helped it expand across borders, from Colombia and Venezuela to Argentina and Mexico. The goal, Reeds says, is to “build something equal for people in the developing world and the developed world.”
The Challenges of Compliance and Education
Operating across jurisdictions brings challenges, especially when balancing accessibility with regulatory compliance. Ledn is registered as a Virtual Asset Service Provider (VASP) in the Cayman Islands, has regulated entities in Spain, and holds lending licenses in process in the U.S.
Compliance, however, is just one piece of the puzzle. Reeds emphasizes that education is equally critical, especially for clients new to credit or crypto finance.
“It’s a big responsibility to make sure people understand what they’re signing up for,” he says.
“We spend much time explaining how liquidation thresholds work, what collateral ratios mean, and what happens if prices move sharply.”
Ledn uses a warning-based system to prevent sudden liquidations, alerting users as collateral values drop. Reeds stresses, “We never want to sell your Bitcoin.”
“If we have to liquidate, we both lose: you lose your Bitcoin and the loan revenue. So we’re aligned in wanting to avoid that.”
Bitcoin as “Pristine Collateral”
Reeds describes Bitcoin as “the world’s most pristine collateral”, a form of savings that, while volatile, is borderless, auditable, and increasingly recognized by institutions.
Still, volatility remains a challenge. “Bitcoin sometimes trades more like a tech stock than a savings asset,” he admits. “We’re still in the price discovery phase.”
That volatility is one reason Ledn limits its collateral options. The company briefly supported Ethereum loans but later discontinued them.
“We found that clients had a better experience with Bitcoin,” Reeds says. “It’s the most important digital asset, and focusing on it has made our product more consistent.”
Navigating Latin American Realities
Ledn’s expansion into Latin America has also required adapting to unique market conditions. In many countries, local borrowing rates are incredibly high, often 18% to 22% in local currencies.
“People in Canada might say, ‘My mortgage is cheaper,’ and of course that’s true,” Reeds says. “But in Latin America, most people don’t have those options. If they can borrow at a single-digit rate in U.S. dollars through Ledn, that’s transformative.”
Beyond interest rates, there’s also the issue of trust. “In North America, people generally trust banks,” Reeds says. “In some markets, that’s not the case. So we try to be visible, attend local events, meet clients in person, and ensure they know who’s behind the company.”
That personal connection, he adds, is vital for building confidence in a new kind of financial product. “When people see real faces behind the platform, it helps them trust the system.”
Measuring Impact Without Buzzwords
When Dr. Lorena Nessi from CCN asked how Ledn measures its impact on financial inclusion, Reeds hesitates to claim too much.
“I’m careful about making big statements unless I can prove them,” he says. “We don’t track GDP impact or anything like that.”
Instead, Ledn focuses on user stories. “We hear from clients who’ve used loans to start businesses, pay medical bills, or support family members,” Reeds says.
“That tells us we’re solving real problems, but we let the clients tell that story.”
The Road Ahead: Lower Rates and Faster Access
Looking to the future, Reeds identifies two priorities: lower interest rates and education.
“Interest rates are a big barrier to adoption,” he says. “Many more people would borrow against their Bitcoin if the cost were 8% instead of 12%.”
Ledn is also investing in instant loan disbursement. “If you have your KYC and Bitcoin ready, we can often get you money the same day,” Reeds says.
“We track disbursements in hours, not days, but we’re still limited by banking rails. Our goal is to make access as instant as possible.”
That speed, he argues, is key to scaling Bitcoin-backed credit on a global level. “We are in an environment in which everybody wants things now. Amazon and Uber offer immediate satisfaction,” he says. “Finance should work the same way,” Reeds adds.
The Bigger Picture: Bitcoin Credit Goes Mainstream
After eight years in operation, Ledn sees Bitcoin-backed lending not as an experiment but an emerging pillar of the crypto economy.
“What’s exciting is watching Bitcoin credit go mainstream,” Reeds says. “When we started, people didn’t understand why borrowing against Bitcoin made sense. Now it’s obvious: if you believe Bitcoin is appreciating, borrowing lets you keep your exposure while meeting real-world needs.”
That simple insight, that you can use Bitcoin without selling it, is changing how people think about wealth and liquidity. For many, it’s their first step into a financial system that’s global, permissionless, and built for the digital age.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.
She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.
Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.
Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.
She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.
Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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