Bitcoin collateralized loans can accelerate capital velocity: Ledn CEO

Sprawling bureaucracies, inefficient processes, and fax machine-era technology have hampered economic development and capital velocity.

Long-term Bitcoin (BTC) holders often face roadblocks to using their wealth to secure financing. Adam Reeds, CEO and co-founder of Ledn—a company that offers Bitcoin lending services—recently sat down with Cointelegraph to share how Bitcoin collateralized loans can accelerate the velocity of money and capital.

Reeds explained that many early adopters of Bitcoin don’t want to sell their BTC to access liquidity and often lack robust options to secure loans from traditional financial institutions, which may or may not recognize Bitcoin holdings as collateral. This effectively keeps the collateral locked up and unproductive in the broader economy.

The solution is to put the Bitcoin collateral to work by borrowing against it, allowing Bitcoin holders to access fiat-denominated liquidity to finance a business, consumer spending, real estate, or even acquire more BTC, the Ledn CEO told Cointelegraph. Moreover, because Bitcoin loans are highly efficient, they allow the borrower to secure financing in a matter of days, as opposed to the weeks or months it usually takes through traditional institutions.

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Sprawling bureaucracies, inefficient processes, and fax machine-era technology have hampered economic development and capital velocity.
Long-term Bitcoin (BTC) holders often face roadblocks to using their wealth to secure financing. Adam Reeds, CEO and co-founder of Ledn—a company that offers Bitcoin lending services—recently sat down with Cointelegraph to share how Bitcoin collateralized loans can accelerate the velocity of money and capital.Reeds explained that many early adopters of Bitcoin don’t want to sell their BTC to access liquidity and often lack robust options to secure loans from traditional financial institutions, which may or may not recognize Bitcoin holdings as collateral. This effectively keeps the collateral locked up and unproductive in the broader economy.The solution is to put the Bitcoin collateral to work by borrowing against it, allowing Bitcoin holders to access fiat-denominated liquidity to finance a business, consumer spending, real estate, or even acquire more BTC, the Ledn CEO told Cointelegraph. Moreover, because Bitcoin loans are highly efficient, they allow the borrower to secure financing in a matter of days, as opposed to the weeks or months it usually takes through traditional institutions.Read more Â