Bitcoin-Backed Loans Set to Thrive as U.S. Policy Shifts

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The U.S. government’s favorable stance towards the cryptocurrency sector is expected to lead to significant changes in the Bitcoin -backed loan market over the next four years. Mauricio Di Bartolomeo, co-founder of Ledn, a company specializing in crypto asset loans, stated that these developments would alter the market’s structure.

Bitcoin-Backed Loan Services

According to Di Bartolomeo, interest rates for Bitcoin-backed loans will decrease, allowing them to compete with traditional loan products. “You will soon witness a surge in the Bitcoin-backed loan market, as rates will become competitive with mortgage or personal loan lines,” he expressed his expectations.

It was emphasized that Bitcoin, due to its property as a crypto asset, will maintain the same value for collateral worldwide. This situation may enable investors in developing countries to access financing opportunities as efficiently as those in Western economies.

Mauricio Di Bartolomeo: “Bitcoin offers a uniform type of collateral worldwide. This will benefit consumers.”

The withdrawal of the SEC‘s SAB 121 rule has also sparked interest from major banks in crypto lending products, which may increase competition in the market. As a result, lower interest rates and a wider range of products are anticipated.

Ledn’s Entrepreneurial Journey

Growing up in Venezuela, Di Bartolomeo entered the crypto world in 2014. Amid inflation and political challenges in his country, financing issues faced by those around him involved in Bitcoin mining became prominent. To resolve this problem experienced by himself and his acquaintances, he co-founded Ledn with Adam Reeds in 2018.

Mauricio Di Bartolomeo: “Miners needed cash for daily expenses while preserving their Bitcoin revenues.”

Ledn has established a broad financial product portfolio by offering Bitcoin loans, yield accounts, stable crypto asset growth accounts, and Ether-backed loans. The company has secured its position by acting early in markets like Latin America and Spain.

Today, the combination of traditional financing methods and digital assets is expanding financial access by providing consumers with various options. This situation may contribute to diversifying credit access in different geographies and intensifying competition in interest rates.

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