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Digital asset lender Ledn has reported a record quarter for its Bitcoin-backed credit products, as more investors chose to borrow against their holdings amid the ongoing crypto bull market.

The company originated $392 million in Bitcoin (BTC)-backed loans during the third quarter, pushing year-to-date originations past $1 billion. Since its inception, Ledn has issued more than $2.8 billion in total loans across over 100 countries, the company said.

Ledn also reported generating approximately $100 million in annual recurring revenue.

The company provides fully collateralized loans, with Bitcoin collateral held in custody throughout the lending period. Ledn’s reserves are verified through independent third-party Proof-of-Reserves attestations.

As Cointelegraph previously reported, Ledn discontinued Ether (ETH) lending earlier this year to focus exclusively on its Bitcoin custody and lending business.

An April report by Galaxy Research identified Ledn as one of the three largest centralized finance (CeFi) lenders, alongside Tether and Galaxy. Together, the three companies accounted for nearly 89% of the CeFi lending market and 27% of the overall digital asset lending market at the time.

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

Bitcoin-backed lending grows amid bull market

Bitcoin’s surge above $100,000 has created a new wealth effect among long-term holders, prompting many to borrow against their Bitcoin rather than sell and incur capital gains taxes.

According to a recent estimate from Osler, Hoskin & Harcourt LLP, a Canadian law firm specializing in financial regulation and digital assets, the Bitcoin-backed lending market could grow to $45 billion by 2030, up from roughly $8.5 billion today.

Institutional interest is also accelerating. Earlier this year, Cantor Fitzgerald completed its first Bitcoin-backed lending deal in partnership with Maple Finance and FalconX, underscoring Wall Street’s growing participation in crypto credit markets.

Cantor announced its entry into the Bitcoin-backed lending market in 2024, backed by an initial $2 billion in capital.

Magazine: Review: The Devil Takes Bitcoin, a wild history of Mt. Gox and Silk Road

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