Ledn vs Xapo Bank: Loans or regulated Bitcoin banking
Ledn is a Bitcoin-backed lending platform offering USD, USDC or local-currency loans, B2X exposure, custody and asset trading. Xapo Bank combines Gibraltar-regulated banking with Bitcoin custody, USD balances that pay daily yield in BTC, and collateralized borrowing.
Collateral requirements differ between the platforms. Initial borrowing starts at 50% LTV on Ledn, whereas Xapo Bank caps loans at 40% LTV. For borrowing costs, advertised APRs on Ledn range from 9.25% to 11.49%. Meanwhile, joining Xapo Bank requires a $1,000 annual membership fee, and its USD accounts offer variable returns up to 4.6% APY. Geographical coverage also varies: United States access and over 100 countries are listed for Ledn, while Xapo Bank lists the United Kingdom and global availability. For safeguarding assets, Ledn uses a qualified independent custodian with segregated on-chain addresses, while Xapo Bank relies on MPC custody, physical underground vaults and 1:1 asset segregation.
Quick verdict
The deciding difference is the product model. Ledn focuses on borrowing against Bitcoin, with a higher 50% maximum LTV, 12-month standard terms and early repayment without a penalty. Xapo Bank is a Gibraltar-licensed bank that adds USD accounts, daily Bitcoin-paid yield and deposit protection of up to £120,000 equivalent. Its Bitcoin-backed borrowing reaches 40% LTV, and the $1,000 annual membership fee changes the cost calculation for smaller balances.
Choose Ledn if the priority is Bitcoin-backed liquidity, access that explicitly includes the United States, or a 50% starting LTV. Its custody model keeps client Bitcoin collateral with an independent qualified custodian, while B2X, automatic top-ups and fee-free trading across 10 integrated pairs add product breadth. Loan APRs range from 9.25% to 11.49%.
Choose Xapo Bank if Gibraltar banking, daily BTC yield on USD balances or deposit protection is more important than maximum borrowing capacity. The account offers up to 4.6% APY, Bitcoin custody balances earn 0.25% APY without lending, and the BTC Credit Fund offers up to 4% APY with institutional counterparty exposure.
| Feature | ||
|---|---|---|
| Ratings | ||
| Our score | 4.1/5 | 4.3/5 |
| User rating | No reviews yet | No reviews yet |
| Rates | 3.5 | 4.0 |
| Security | 4.5 | 4.5 |
| Transparency | 4.5 | 4.5 |
| Flexibility | 3.5 | 4.0 |
| Support | 4.0 | 4.5 |
| Specs | ||
| KYC required | Yes | Yes |
| Products | Crypto-backed loans | Savings / earn, Crypto-backed loans |
| Highest advertised APY | Not disclosed | 4.6% |
| Max loan-to-value | 50% | 40% |
| Loan APR from | 9.25% | Not disclosed |
| Supported assets | 5 | Not disclosed |
| Available in | Global, Canada, United States, Latin America, Europe (EEA), Asia-Pacific, Middle East, Africa | United Kingdom, Global |
| Proof of reserves | Yes | Not disclosed |
| Insurance | Not disclosed | Gibraltar Deposit Guarantee Scheme covers USD deposits up to £120,000 equivalent; Lloyd's of London covers BTC custody |
| Licenses & registrations | Cayman Islands VASP registration (CIMA) | Gibraltar banking licence (GFSC) |
| Flexible (withdraw any time) | Yes | Yes |
| Fixed terms | Yes | Not disclosed |
| Auto-compounding | Not disclosed | Yes |
| Company | ||
| Founded | 2018 | 2013 |
| Headquarters | Canada | Gibraltar |
| Investors | Tether | Not disclosed |
| Strengths and weaknesses | ||
| Pros |
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| Cons |
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| Best for | Bitcoin holders borrowing cash, Long-term BTC collateral users, Borrowers needing USD liquidity | High-net-worth Bitcoin holders, Savers accumulating Bitcoin yield from cash, Borrowers seeking non-taxable liquidity |
Highlighted cells show the stronger value in each row. Data comes from each provider's site and public sources; check details before you sign up.
FAQ
Is Ledn cheaper than Xapo Bank?
The published costs differ: Ledn advertises loan APRs from 9.25% to 11.49%, while Xapo Bank charges a $1,000 annual membership fee.
Which offers the higher Bitcoin-backed loan-to-value ratio?
Ledn offers the higher maximum LTV at 50%, compared with 40% at Xapo Bank. Ledn's standard loans run for 12 months, while Xapo Bank offers instant cash loans against deposited Bitcoin.
Which one works in the United States?
Ledn explicitly lists the United States among its available markets. Xapo Bank lists the United Kingdom and Global availability.
Do Ledn and Xapo Bank both offer Bitcoin yield?
Xapo Bank pays daily yield in Bitcoin on USD balances, with rates up to 4.6% APY. Ledn's listed products focus on Bitcoin-backed loans, custody, B2X and asset trading rather than a Bitcoin yield account.
How do their custody models differ?
Ledn places Bitcoin loan collateral with a qualified independent custodian in segregated on-chain addresses. Xapo Bank uses MPC protocols, physical underground vaults and mandatory 1:1 asset segregation, with Bitcoin custody covered by Lloyd's of London rather than the Gibraltar Deposit Guarantee Scheme.