As banks gear up to start offering bitcoin-backed loans and credit lines, Ledn, one of the world’s largest bitcoin lenders, is launching a new Open Book Report designed to set an industry benchmark for transparency and expose the gaps that risk triggering a repeat of 2022’s lending crisis at an institutional scale.
Traditional lenders (including Citi, JPMorgan, Wells Fargo, BNY Mellon, Schwab, and Bank of America) are reportedly entering the space amid a regulatory vacuum in terms of rehypothecation practices and proof of reserves. Global rules on crypto capital requirements & proof of reserves remain in flux, with the US and UK refusing to implement Basel’s proposed framework. IOSCO is pushing regulators to hold crypto custody and lending to the standards of traditional finance, yet almost no institution has disclosed how bitcoin collateral is managed, whether it’s rehypothecated, or what happens in a liquidation scenario.
“This is how we get a 2022-style lending crisis at institutional scale,” said John Glover, Chief Investment Officer at Ledn and former Managing Director at Barclays. “If lenders do not have to disclose how they use client collateral, the clients become the leverage. We saw what happened when BlockFi, Celsius, and Voyager operated in the dark. The difference now is that the balance sheets are bigger.”
Ledn’s Open Book Report, launching today, showcases the industry’s longest-running Proof of Reserves programs with ongoing, standardized transparency of its BTC loan book, collateral levels, and aggregate loan-to-value ratios. The Network Firm LLP, a U.S.-based certified public accounting firm, independently reports & confirms that 100% of collateral is held in custody.
The first Monthly Open Book Report reveals $868 million in outstanding BTC-backed loans, with 18,488 BTC in collateral posted, held 100% BTC in custody; all BTC collateral is held in on-chain addresses and/or custodial accounts. Ledn’s average loan-to-value ratio stands at 55%, a sign of health with an aggregate LTV well below industry liquidation thresholds. Since 2018, the company has funded $10.2 billion in lifetime loans across 47,000 originations, with a perfect track record of protecting client assets.
This framework moves the industry past one-off snapshots—starting with monthly disclosures and laying the groundwork for more continuous, real-time transparency over time. Unlike self-reported wallet addresses, Ledn’s approach combines monthly reporting on loan book metrics—including outstanding loans, collateral posted, and average LTV—with reporting from The Network Firm LLP, a U.S.-based certified public accounting firm. Ledn also maintains Proof of Reserves attestations on a semiannual basis (every two quarters), confirming that assets exceed client liabilities, with Merkle tree methodology enabling clients to confirm their balances were included.
While some companies have announced “proof of reserves” by publishing wallet addresses, Glover argues this falls short. “True transparency requires independent reporting, regular updates, and methodologies anyone can check,” said Glover. “Clients shouldn’t have to take anyone’s word for it.”
Ledn, which recently received a strategic investment from Tether, has maintained a perfect track record of protecting client assets across its loan originations. The company pioneered third-party audited Proof of Reserves in crypto lending in 2021 and was among the few lenders to survive the 2022 market collapse unscathed.
As traditional financial institutions accelerate their entry into bitcoin-backed lending, Ledn’s Open Book Report establishes the baseline against which these new entrants should be held, before regulators mandate it.
For more information on Ledn’s Open Book Report, visit https://www.ledn.io/open-book-report.
About Ledn
Ledn is the leading platform for Bitcoin-backed loans globally, offering a secure and transparent way to unlock liquidity without selling your bitcoin. Founded in 2018, the company has serviced over $10 billion in loans and offers its products in more than 100 countries. Operating a simplified Bitcoin-only, fully-custodied, no-rehypothecation model with recurring transparency reporting, Ledn has established itself as the most trusted name in Bitcoin lending.
For more information about Ledn and its services, visit the company’s website at www.ledn.io
Source: Ledn
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