Ledn Introduces Ethereum Yield Product and Plans Expansion into Stablecoin Market
Summary:
Cayman Islands-based lending platform, Ledn, originally focused on Bitcoin lending, has introduced a Ethereum (ETH) yield product into its Growth Accounts offerings. The move comes in response to users looking for a secure alternative to managing Ether staking personally. Ledn also plans to roll out a second stablecoin Growth Account allowing users to deposit and earn interest on USDT tokens from October 12. However, these new offerings will not be available to users in the US or Canada. Previously, Ledn formed a partnership with real estate firm Parallel to enable crypto users to invest in property for potential residency.
Originating from Bitcoin (BTC) lending, Ledn, a lending platform, has revealed the introduction of an Ethereum (ETH) yield product in response to customer desire for a guarded alternative to personally staking Ether. The firm, based in the Cayman Islands, has incorporated an ETH option into its Growth Accounts offerings, which currently provide secure methods for customers to garner interest on Bitcoin and USD Coin (USDC) deposits.
In a statement given to Cointelegraph, Ledn underlined consumer demand for a method to generate interest from ETH assets, bypassing the need to personally stake and monitor Ether via liquid staking pools. The company also pointed out the unique attribute of its Growth Accounts, which are "ring-fenced" from Ledn’s other services and products. The only exposure of deposited ETH is to the counterparty yielding off the staked sum. As a result, customer deposits would remain safe even in the eventuality of Ledn’s bankruptcy.
The relevance of this feature has been underlined by recent high-profile failures in the cryptocurrency industry's leading crypto lending companies. Incidents involving firms such as Celsius, Voyager, and Three Arrows Capital (3AC) demonstrate the challenges and unsound lending practices that have troubled the sector.
Mauricio Di Bartolomeo, Ledn's Chief Strategy Officer, acknowledged the consistent customer interest in an Ether product, expressing confidence that it would be a beneficial alternative to individually managing ETH staking. He said, “In contrast to native ETH staking, this yield option is considerably simpler to establish. Moving ahead, we aim to provide support for ETH across Ledn’s entire product range in the forthcoming months.”
Additionally, Ledn disclosed plans to initiate a second stablecoin Growth Account, allowing users to deposit and earn interest on USDT tokens from October 12. These upcoming offerings, however, will not be accessible to users in the United States or Canada.
Ledn isn’t the sole company, originally focusing on Bitcoin, to have progressively extended its support for other cryptocurrencies. Casa, a non-custodial wallet service initially offering Bitcoin-only services, introduced multi-signature ETH self-storage in June 2023.
In August 2023, Ledn also formed a partnership with Parallel, a Cayman Islands' real estate firm. This collaboration aims to provide a way for cryptocurrency users to invest in property as a path to potential residency.
Published At
9/28/2023 1:56:55 PM
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