‘Before Bitcoin, my most successful investment was shorting the Bolivar’ — Ledn co-founder

Mauricio di Bartolomeo, Ledn co-founder, previously achieved investment success by shorting the Venezuelan Bolivar against the US dollar. This strategy involved borrowing Bolivars to purchase dollars, profiting from the Bolivar’s devaluation. This experience informed Ledn’s creation, a Cayman Islands-based company offering Bitcoin-backed loans. Ledn allows investors to access dollar liquidity without selling their Bitcoin, mirroring di Bartolomeo’s earlier strategy but utilizing Bitcoin as the stronger asset. This approach creates a “virtuous cycle,” similar to leveraging real estate, stocks, or gold.

The crypto lending market, encompassing Ledn’s operations, has significantly expanded over the past five years. Factors driving this growth include Bitcoin’s price appreciation, institutional investor involvement, and the increasing utility of stablecoins. By the fourth quarter of 2024, the market was valued at $30.2 billion, a threefold increase from two years prior, according to Galaxy Research. While below its 2021 peak, the market has rebounded strongly from its 2022 lows. Decentralized finance (DeFi) applications, enabling on-chain asset borrowing, have contributed to this resurgence.

Ledn is among the top three centralized finance (CeFi) lenders, holding a $9.9 billion loan book by the end of 2024. Along with Tether and Galaxy, these three firms account for 89% of the market, highlighting their dominance. The rise of Bitcoin-backed loans reflects a shift in investment strategies, where Bitcoin’s perceived strength relative to the US dollar is exploited for profit generation. This strategy directly builds upon successful historical precedents and is supported by the continued growth of the broader crypto lending market.