Bitcoin-backed loan market could reach $1 trillion

The bitcoin-backed credit market could experience a major change of scale in the coming years. According to a report relayed by Ledn, this segment, which is still marginal today, could reach $1,000 billion in the long term. A projection which comes as the crypto industry is still trying to turn the page on the bankruptcies of 2022 and the shock caused by Celsius, Voyager or BlockFi.

Ledn sees the emergence of a new crypto credit giant

Crypto lender Ledn estimates that the bitcoin-backed lending market could grow from $3 billion today to $1 trillion in the next ten years. This projection is based on a study conducted by Protocol Theory among 1,244 crypto holders in the United States and Australia between February and March.

The figures put forward by the report translate a major gap between theoretical interest and real adoption in the sector:

• 88% of respondents say they are considering a crypto-backed loan;
• Only 14% currently use this type of product;
• Ledn speaks of a 6 to 1 gap between interest and adoption;
• The total capitalization of the crypto market reached 2.68 trillion dollars during the month of May;
• Galaxy Research valued the overall crypto lending market at $73.6 billion in the third quarter of 2025.

The report compares this model to mechanisms already established in traditional finance, such as Lombard credit or mortgage loans. Indeed, the objective is to obtain liquidity without selling your cryptos.

Mauricio Di Bartolomeo, co-founder of Ledn, summary this dynamic by affirming: “The demand already exists. What is still missing is a trust infrastructure capable of giving borrowers the peace of mind they need to take action.”. According to the company, the potential of bitcoin as financial collateral remains largely untapped despite growing investor interest.

The memory of bankruptcies continues to slow down investors

While interest in these products is growing, the main obstacles identified by the study relate less to technology than to the perception of risk. Respondents mainly cite the volatility of cryptos, the risk of automatic liquidation as well as the regulatory uncertainty surrounding centralized platforms. The collapse of several major players in the sector also continues to weigh heavily on the market. Celsius Network, Voyager Digital and BlockFi remain associated with the 2022 crypto credit crisis, during which billions of dollars of user assets were frozen or lost.

This distrust explains why part of the market now seems to favor prudent structures, with stricter collateral requirements and more transparent risk management models. Ledn is precisely trying to position itself in this area by putting forward an approach centered on bitcoin as the main guarantee asset. The report also highlights that many BTC holders want to maintain their exposure for the long term rather than sell their positions for immediate liquidity.

The evolution of this market will now depend on a fragile balance between financial innovation and restoration of confidence. If the platforms manage to convince investors that the mistakes of the previous cycle will not be repeated, the bitcoin-backed loan could gradually establish itself as a common financial tool in the crypto ecosystem. Otherwise, the sector risks remaining in a paradox where the theoretical interest of investors never really transforms into mass adoption.