In a bold move, crypto lender Ledn announced that it will focus solely on Bitcoin (BTC) collateralized loans and will discontinue its support for Ethereum (ETH) collateralized loans.
According to The Block, Ledn announced that it has switched to a fully collateralized Bitcoin lending system and ended its support for Ethereum in order to consolidate its BTC-focused business and further protect customer assets against credit risks.
Accordingly, the company announced that it will stop supporting Ethereum-backed loans and BTC/ETH savings products as of July 1. The company also added that it will no longer lend out customer assets to earn interest.
Ledn co-founder and CEO Adam Reeds said the move brings the company back to its roots and brings it more in line with Bitcoins founding principles.
With our new hyper-focus on bitcoin-only lending, we are returning to the roots and principles that originally inspired Bitcoin,
Bitcoin was created as a direct response to the risks of fractional reserve banking and the uncontrolled use of client assets to generate interest. Traditional finance relies on the constant repurposing of client assets to create leverage and ultimately inflation. Bitcoin users instinctively reject this model. That‘s why we’ve moved away from that approach entirely. With our retained credit structure, client assets stay where they belong and are held transparently.