Bitcoin-Backed Loans Could Hit $1 Trillion, Ledn Says - But Most Crypto Holders Still Haven't Borrowed

Consumer Bitcoin-backed loans are valued at about $3 billion today and could grow to $1 trillion within the next decade. A survey of 1,244 cryptocurrency holders in the United States and Australia found 88% would consider borrowing against digital assets, while 14% currently do. The gap is linked to confidence barriers, including concerns about crypto price volatility, liquidation risk, and uncertainty about regulation. When evaluating lending platforms, respondents prioritize risk management practices, platform reputation, and clear terms over interest rates or features. Trust infrastructure is presented as the missing element enabling borrowers to act. Ledn has begun building this infrastructure through a $200 million investment-grade Bitcoin-collateralized asset-backed security with an S&P Global BBB- senior tranche rating.

"The company released research showing that the consumer Bitcoin-backed loan market - currently worth around $3 billion - could grow 300 times larger within the next decade. To put that in context, Galaxy Research pegged the entire crypto lending market, across every type of platform and product, at a $73.6 billion all-time high in Q3 2025. Ledn is betting the consumer Bitcoin slice alone will dwarf that figure."

"The headline finding: 88% of crypto holders said they would consider borrowing against their digital assets, but only 14% currently do. That leaves a 74-percentage-point gap between people who are open to the idea and people who have actually done it. So what's stopping them? The top barriers were not about understanding the product. Non-borrowers pointed to three confidence-related concerns: worries about crypto price swings, the risk of getting liquidated if prices fall, and uncertainty about regulation."

"When asked what they look for in a lending platform, respondents ranked risk management practices, platform reputation, and clear terms ahead of interest rates or features. Trust, in other words, is the product. "The demand side of the equation is solved," said Mauricio Di Bartolomeo, co-founder of Ledn. "What's still catching up is the trust infrastructure that gives borrowers the confidence to act.""

"In February 2026, Ledn closed what it calls the first-ever investment-grade Bitcoin-collateralized asset-backed security - a $200 million bond deal with its senior tranche rated BBB- by S&P Global. Ledn's $200 million bitcoin-collateralized bond rated by S&P. Galaxy Research described it as crypto"

Read at Bitcoin Magazine