Ledn Predicts Massive Growth For Bitcoin Collateral Lending

The market for bitcoin-backed credit could undergo a major scale change in the coming years. According to a report shared by Ledn, this still marginal segment today could reach $1 trillion in the long term. A projection that comes as the crypto industry is still trying to move past the 2022 bankruptcies and the shock caused by Celsius, Voyager, or BlockFi.

Ledn Sees a New Crypto Credit Giant Emerging

The crypto lender Ledn estimates that the market for Bitcoin-backed loans could grow from $3 billion today to $1 trillion in the next ten years. This projection is based on a study conducted by Protocol Theory with 1,244 crypto holders in the United States and Australia between February and March.

The figures presented in the report show a major gap between theoretical interest and actual adoption in the sector :

• 88 % of respondents state they are considering a crypto-backed loan ;
• Only 14 % currently use this type of product ;
• Ledn talks about a 6 to 1 gap between interest and adoption ;
• The total crypto market capitalization was $2.68 trillion during this May ;
• Galaxy Research valued the overall crypto lending market at $73.6 billion in Q3 2025.

The report compares this model to mechanisms already established in traditional finance, such as Lombard credit or mortgage loans. Indeed, the goal is to obtain liquidity without selling one’s cryptos.

Mauricio Di Bartolomeo, co-founder of Ledn, summarizes this dynamic by stating: “the demand already exists. What is still missing is a trusted infrastructure capable of giving borrowers the peace of mind necessary to take action”. According to the company, the potential of bitcoin as financial collateral remains largely untapped despite growing investor interest.

The Memory of Bankruptcies Continues to Hinder Investors

While interest in these products is growing, the main obstacles identified by the study relate less to technology than to risk perception. Respondents mainly cite crypto volatility, automatic liquidation risk, and regulatory uncertainty surrounding centralized platforms. The collapse of several major players in the sector also continues to weigh heavily on the market. Celsius Network, Voyager Digital, and BlockFi remain associated with the 2022 crypto credit crisis, a period during which billions of dollars of user assets were frozen or lost.

This distrust explains why part of the market now seems to prefer cautious structures, with stricter collateral requirements and more transparent risk management models. Ledn is precisely trying to position itself on this ground by promoting an approach centered on bitcoin as the main guarantee asset. The report also notes that many BTC holders wish to maintain their long-term exposure rather than sell their positions for immediate liquidity.

The future of this market will now depend on a fragile balance between financial innovation and trust restoration. If platforms can convince investors that the mistakes of the previous cycle will not be repeated, bitcoin-backed lending could gradually establish itself as a common financial tool in the crypto ecosystem. Otherwise, the sector risks remaining in a paradox where investors’ theoretical interest never truly turns into mass adoption.