Digital asset lender Ledn has announced that it just had its best quarter ever for its Bitcoin-backed loans. This happened because more investors wanted to borrow against what they own during the current rise in cryptocurrency prices. In the third quarter, the company provided $392 million in loans backed by Bitcoin, bringing the total amount lend this year to over $1 billion. Since it started, Ledn has given out more than $2.8 billion in loans in more than 100 countries, as stated by the company. Ledn also said it made about $100 million in steady annual revenue. The company gives loans that are completely secured, meaning the Bitcoin used as collateral is kept safe while the loan is active. Ledn’s reserves are checked by independent third-party company called Proof-of-Reserves. Earlier this year, Ledn stopped lending Ether so that it could concentrate on Bitcoin lending and custody.

An April study by Galaxy Research named Ledn as one of the top three centralized finance lenders, along with Tether and Galaxy. These three companies made up almost 89% of the CeFi lending market and 27% of all digital asset lending at that time. Bitcoin rising above $100,000 has led many long-term holders to borrow against their Bitcoin instead of selling it, which would make them pay capital gains taxes. A recent estimate from Osler, Hoskin & Harcourt LLP, a Canadian law firm focused on financial rules and digital assets, predicts that the Bitcoin-backed lending market could expand to $45 billion by 2030, up from about $8.5 billion now. Interest from big institutions is growing too. Earlier this year, Cantor Fitzgerald completed its first deal for Bitcoin-backed loans with Maple Finance and FalconX, showing that Wall Street is getting more involved in crypto lending. Cantor announced its entry in the Bitcoin lending market in 2024, starting with $2 billion in funds.