Ledn Sees Bitcoin-Backed Lending Reaching $1 Trillion by 2036
The Bitcoin-backed consumer lending market could reach $1 trillion by 2036, according to Ledn.
This projection is based on a study conducted by Protocol Theory, which surveyed 1,244 cryptocurrency holders in the US and Australia. The study found that 88% of respondents would consider taking out a crypto-backed loan or credit product, but only 14% currently use one.
The sector's growth has been hindered by trust issues, not demand, said Ledn co-founder Mauricio Di Bartolomeo. He noted that the 2022 crypto credit collapse led to tighter regulatory scrutiny and wiped out billions of dollars in customer funds.
The survey also revealed that price volatility, forced liquidation risk, and uncertainty about the regulatory status of crypto-backed loans were the main concerns for non-users. Platform reputation, transparency around loan terms, custody safeguards, and risk management practices were ranked as more important than rates or product features when choosing a lending platform.