In a departure from its Bitcoin lending origins, Ledn, a lending platform, has announced the introduction of an Ethereum (ETH) yield offering in response to user requests for a more secure alternative to manual Ether staking.
This addition of an ETH offering expands Ledn’s Growth Accounts products, which currently provide users with segregated accounts to earn interest on deposits in Bitcoin and USD Coin (USDC).
Users have been vocal in their desire for a way to generate interest from their ETH holdings without the need to personally participate in the management of Ether through liquid staking pools.
Ledn emphasizes that its Growth Accounts are distinctively “ring-fenced” from the platform’s other offerings. Deposited ETH is solely exposed to the counterparty generating yield from the staked amount. Consequently, if Ledn were to face financial issues, user deposits would remain unaffected. This distinction is particularly crucial given the notable failures of some prominent cryptocurrency lending firms in the industry, such as Celsius, Voyager, and Three Arrows Capital (3AC). These incidents underscore the potential risks associated with overextension and questionable lending practices in the sector.
Mauricio Di Bartolomeo, the Chief Strategy Officer at Ledn, expressed confidence that the introduction of an Ether offering aligns with user preferences and provides a more convenient alternative to self-managing ETH staking.
Ledn has further revealed its plan to launch a second Growth Account catering to stablecoins, allowing users to deposit and earn interest on USDT tokens starting from October 12. However, it’s important to note that these new offerings will not be accessible to users from the United States or Canada.
Interestingly, Ledn is not the sole Bitcoin-centric company that has gradually expanded its support to cryptocurrencies beyond BTC. Casa, initially a Bitcoin-exclusive platform, introduced multi-signature ETH self-storage in June 2023.
Furthermore, in August 2023, Ledn announced a partnership with Parallel, a real estate firm based in the Cayman Islands. This collaboration offers cryptocurrency users the opportunity to invest in real estate as a means of securing eventual residency.