Ledn co-founder Mauricio Di Bartolomeo projected the bitcoin-backed lending market could grow to $1 trillion in the next five to 10 years. Speaking at BTC Prague last week, he argued investment-grade bonds can unlock institutional investment, as no single balance sheet could provide the liquidity needed to support such a market. The crypto lending sector remains contentious after suffering significant setbacks following 2022 bankruptcies of firms including Celsius, BlockFi, Voyager Digital, and Genesis.
Ledn Accounts for 30% of Global Bitcoin-Backed Lending Market in 2025
Ledn issued Canada's first bitcoin-backed loan in 2018. The company estimates it now accounts for roughly 30% of the global market, originating $1.4 billion in loans during 2025.
Di Bartolomeo pointed to mortgage and auto loans as a model, where roughly 60% to 70% of mortgages and about 25% of auto loans are securitized and sold as bonds. Ledn's thesis is that packaging bitcoin-backed loans into similar products could allow lenders to tap the multi-trillion-dollar asset-backed securities market and attract institutional capital to the sector.
Ledn Issues First S&P-Rated Investment-Grade Bitcoin Debt Instrument
"In order to get a bond that's meaningful, you need size, you need at least $200 million, and you need a rating," Di Bartolomeo said. He highlighted Ledn's own recently issued bond product that uses Fidelity as a custodian and Jefferies as the bookrunner. According to Di Bartolomeo, it was the first bitcoin debt instrument rated by S&P Global, receiving an investment-grade rating.
An investment-grade rating is significant because many institutions, including pension funds and endowments, allocate capital specifically to investment-grade debt securities, potentially opening a different pool of funding than bitcoin exchange-traded funds or Strategy-style preferred-stock offerings.
Institutional Investors Review Ledn Bond During February Correction
"We were marketing this bond during February, which was during the correction," Di Bartolomeo continued. "The very interesting thing was during these meetings, a lot of these investors who hadn't bought a bitcoin instrument before, were worried about how the system would work in a downturn. And here they were reviewing the deal during a downturn and seeing zero loan defaults in the middle of a bitcoin drawdown. And that made them feel a lot more comfortable about our processes."
The Ledn co-founder said the bond ultimately ended up three times oversubscribed.
"If we do this right, we believe we have a big opportunity to open up that market, price it correctly, and use that benefit to basically deliver cheaper rates on our loans over time," he said.
2022 Bankruptcies Reshape Crypto Lending Sector
The crypto lending sector suffered significant setbacks following a tumultuous year for centralized services in 2022 — a period that saw the bankruptcy of firms like Celsius, BlockFi, Voyager Digital, and Genesis.
FAQ
What did Mauricio Di Bartolomeo project about the bitcoin-backed lending market?
Ledn co-founder Mauricio Di Bartolomeo projected the bitcoin-backed lending market could grow to $1 trillion in the next five to 10 years, arguing investment-grade bonds can unlock institutional investment in the sector.
How much of the global bitcoin-backed lending market does Ledn account for?
Ledn estimates it now accounts for roughly 30% of the global market, originating $1.4 billion in loans during 2025. The company issued Canada's first bitcoin-backed loan in 2018.
What was significant about Ledn's recently issued bond?
According to Di Bartolomeo, Ledn's bond was the first bitcoin debt instrument rated by S&P Global, receiving an investment-grade rating. The bond uses Fidelity as a custodian and Jefferies as the bookrunner, and ended up three times oversubscribed after being marketed during February.
