Crypto lending platform Ledn has announced its new 8.5 percent APY offer for USDT savings deposits. Ledn will launch this application next month. Meanwhile, Ledn users’ USDC savings accounts switched to the platform’s new Growth Accounts today, following a similar switch for Bitcoin savings in August.
Crypto lender will also give high APY on USDT savings
Ledn will give 8.5% APY on USDT savings deposits starting from the beginning of October. Meanwhile, users’ existing USDC savings are being transferred to these new Growth Accounts starting today. The Cayman Islands-based firm will use the new USDT Growth Accounts to support its retail loan book, according to a statement. Borrowers need to over-collateralize their loans on the platform. They also need to supplement funding from Ledn’s Growth Accounts with Bitcoin deposits.
Ledn’s previous USDC and Bitcoin Savings Accounts have been split into a non-interest-bearing Trading Account and an interest-bearing Growth Account, starting with Bitcoin Growth Accounts offering up to 1% APY on August 3. USDC Growth Accounts migration went live on the crypto platform today with the same 8.5% APY rate. USDT will follow next month. The lender clarified that users can freely switch between Trading and Growth Accounts. Thus, he stated that it was possible for them to gain control over their assets.
Ledn CSO: We listened to the demands of the industry!
Ledn claims to offer the crypto industry’s highest stablecoin yield, compared to current rates of up to 5.4% on DeFi lending platforms such as Compound, Aave and Maker-backed Spark Protocol. Crypto returns have fallen compared to 2021 bull market highs. However, Ledn’s 8.5% APY is also higher than the rates of up to 5.5% currently available on traditional money market funds, a type of cash alternative made up of short-term government debt securities such as Treasury Bills. Ledn co-founder and CSO Mauricio Di Bartolomeo made the following statement about the development:
We listened to the industry’s demand for a new way to generate returns in a safer and more transparent way. In my opinion, the yield combined with the collateralized status of these accounts makes this a great alternative to Treasury Bills.
Ledn’s protected USDT, USDC and Bitcoin accounts
As you follow on Kriptokoin.com, companies such as Celsius, BlockFi and Voyager Digital went bankrupt in 2022. This seriously affected confidence in the sector. Ledn’s Growth Accounts came in part as a response to the collapse of these centralized lending platforms. Di Bartolomeo said in April that the company had successfully weathered the crisis by moving away from its sole initial partner, Genesis. Meanwhile, Ledn introduced the Open Ledger Report and a revamped customer dashboard. Thus, the crypto platform claims that Growth Accounts provide greater transparency on how they generate returns.
Additionally, Growth Accounts are legally ring-fenced. This means that users are only exposed to the risks of counterparties that produce their returns. This means that Ledn is protected in case of bankruptcy and is not exposed to the risks of each account type. For example, USDT Growth Accounts are not exposed to the risks of USDC Growth Accounts. Of course, the opposite is also true.
Ledn also argues that it offers “a Bitcoin and stablecoin savings experience outside of exposing customers to the risks associated with decentralized finance protocols that continue to be scarred by a consistent stream of hacks and exploits.” Last month, Ledn joined forces with crypto real estate broker Parallel. This partnership enables investors to finance and acquire Cayman Islands properties by leveraging their digital assets. Thus, Ledn opened a crypto-native path to the “Golden Visa”.
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