Ledn, a Bitcoin-backed lending platform, partnered with research firm Protocol Theory to survey 1,244 crypto holders across the U.S. and Australia, revealing what the platform calls a 'collateral gap' in Bitcoin lending. Over 88% of holders said they would consider borrowing against their digital assets, but only 14% currently do, creating a 6-to-1 ratio between intent and adoption. The research highlights a preference among long-term Bitcoin holders to borrow against their holdings rather than sell, allowing them to access liquidity without triggering capital gains taxes or relinquishing asset exposure accumulated over years, including through the 80% crashes of 2018 and 2022.
Ledn and Protocol Theory Survey 1,244 Crypto Holders
Ledn commissioned the research in partnership with Protocol Theory, surveying 1,244 crypto holders based in the U.S. and Australia. The findings identify a 6-to-1 gap between holders open to borrowing against digital assets and those currently using such loans. Ledn has been making Bitcoin-backed loans since 2018 and reports crossing more than $10 billion in loan originations. Its core product allows holders to pledge Bitcoin as collateral and borrow dollars without selling coins.
Current Borrowers Accumulate More Bitcoin Instead of Selling
Among the 14% of holders currently using crypto-backed loans, 62% are buying more Bitcoin and just 1% are selling, according to the research. The survey found that 72% of respondents agreed that crypto-backed loans give them convenient access to funds without needing to sell. When Protocol Theory asked non-borrowers what was holding them back, the three most-cited concerns were managing Bitcoin's price volatility, managing liquidation risk, and regulatory uncertainty around crypto-backed loans. Rates and features ranked below trust signals such as risk-management practices, reputation, clarity of terms, ease of use, and track record.
Mauricio Di Bartolomeo, co-founder of Ledn, stated: "Bitcoin is now held by tens of millions of people, managed by regulated institutions, and covered by major ratings agencies — yet collateralised borrowing against it is still in very early innings compared to any traditional asset class of this size. The demand side of the equation is solved. What's still catching up is the trust infrastructure that gives borrowers the confidence to act."
Di Bartolomeo added: "High-net-worth clients with access to Morgan Stanley and traditional banking still choose crypto-native lending, not because it's cheaper, but because it fits how bitcoin actually works."
Crypto Lending Market Reaches $73.6 Billion in Q3 2025
The broader crypto lending market hit a record $73.6 billion in the third quarter of 2025, according to Galaxy Research. That figure represents a fraction of the collateralized borrowing that occurs against traditional assets of similar size. Margin lending against equities alone runs into the trillions, and mortgages make up the bulk of U.S. household debt. By that measure, crypto is the only major asset class where collateralized borrowing has not scaled with holdings.
Australian Holders Borrow Proactively, U.S. Holders Show Measured Approach
The survey identified a regional divide between the two markets. Australian holders were more likely to borrow proactively as part of their financial planning and to compare lenders before choosing one, which the report links to a more fragmented Australian market where no single platform dominates. U.S. holders, by contrast, showed a more measured borrowing posture, with trust-building and confidence playing a bigger role in conversion.
FAQ
What did the Ledn and Protocol Theory research find about Bitcoin borrowing?
The research surveyed 1,244 crypto holders in the U.S. and Australia and found that over 88% would consider borrowing against their digital assets, but only 14% currently do, creating a 6-to-1 'collateral gap.'
Why do Bitcoin holders prefer borrowing over selling?
Holders borrow against Bitcoin to access liquidity without triggering capital gains taxes or giving up long-term asset exposure. Among current crypto-loan users, 62% are buying more Bitcoin and just 1% are selling.
How large is the crypto lending market according to Galaxy Research?
Galaxy Research reported that the broader crypto lending market reached a record $73.6 billion in the third quarter of 2025, though this remains a fraction of collateralized borrowing against traditional assets like equities and mortgages.
