Bitcoin-Backed Loans Will Become Significantly Cheaper Around the World: Ledn Co-Founder
The Bitcoin lending market will become much more competitive in the coming years, which will have a positive impact on consumers.
Tom Carreras | Edited by Cheyenne Ligon Updated April 9, 2025, 7:34 PM Published April 9, 2025, 6:57 PM
What you need to know:
- The Trump administration's positive stance on cryptocurrencies is expected to significantly change the Bitcoin lending market around the world over the next four years.
- Ledn co-founder Mauricio Di Bartolomeo predicts a rise in Bitcoin-backed loans as interest rates become competitive with traditional lending options.
- The US Securities and Exchange Commission's repeal of a restrictive accounting rule opens the door for major banks to enter the cryptocurrency lending market.
The Trump administration's support for the cryptocurrency sector over the next four years will fundamentally change the Bitcoin (BTC) lending market.
This was announced by Mauricio Di Bartolomeo, co-founder of Ledn, a company specializing in lending against digital assets.
“You’ll see a rapid growth in bitcoin-backed loans as rates drop to levels that make them competitive with mortgages, personal lines of credit, or other instruments,” Di Bartolomeo told CoinDesk.
What’s most intriguing, he says, is that these rates will fall not just in the U.S. but around the world, thanks to the nature of bitcoin as a digital asset. “Gold stored in a Swiss vault is not the same as gold stored in a Venezuelan vault, but bitcoin in Colombia is the same as bitcoin in Madrid and anywhere in the world. As an underwriter, I have uniform collateral,” Di Bartolomeo said.
This means that investors from developing countries, who do not have the same financing options as those in Western countries, will soon have a chance to access what Di Bartolomeo called world-class financing at reasonable rates.
That's because big banks are finally ready to enter the crypto lending market as the U.S. Securities and Exchange Commission (SEC) has repealed SAB 121, a controversial accounting rule that prohibited companies from holding crypto assets.
Historically, crypto lending services in the US have been provided by a very limited number of players, making the sector relatively uncompetitive, Di Bartolomeo said.
“The market is now seller-owned. We’re providing fully secured dollars at 12.5% plus with zero downside for seven years. Banks are going to look at that and say, ‘Wow, that’s an attractive rate of return.’ One bank is going to offer 12% a year. Another is going to offer 10%. Another is going to offer 9%. So it’s going to get compressed,” he added. “That’s really going to be a win-win for consumers.”
Bitcoin Lending
Born and raised in Venezuela, Di Bartolomeo entered the world of cryptocurrency in 2014. At the time, the country was experiencing hyperinflation and the rise of Nicolás Maduro. While most of Di Bartolomeo’s friends were focused on
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