“This could be very beneficial from a tax perspective and it also allows you to keep the upside of the asset itself.” – 01:18
Mauricio Di Bartolomeo, Co-Founder & CSO of Ledn, joins Remy Blaire to discuss the rapidly expanding Bitcoin lending market and the evolving landscape of institutional adoption.
Mauricio breaks down the surge in Bitcoin-backed loans over the past 18 months, particularly following the change in administration in November. Mauricio explains how these loans allow Bitcoin holders to use their assets as collateral to borrow U.S. dollars, providing them with liquidity while retaining the potential upside of their Bitcoin investments. This practice has become increasingly popular as individuals seek to translate their digital wealth into real-life experiences, such as purchasing real estate or starting businesses.
However, the pair also delve into the skepticism surrounding Bitcoin lending, particularly from Bitcoin maximalists who prioritize decentralization and security. Mauricio acknowledges the lingering concerns stemming from past failures of lending platforms like Celsius and BlockFi, which engaged in risky, unsecured lending practices. He emphasizes that Ledn operates differently by ensuring that Bitcoin remains in custody at all times and is not rehypothecated, thereby protecting the interests of borrowers.