Bitcoin holders looking to access funds without selling their BTC can consider different lending models, with Liquidium and Ledn taking notably different approaches.
Liquidium offers stablecoin borrowing through on-chain lending pools, with variable interest rates and no fixed maturity date. Ledn operates as a centralised lender, offering fiat or supported stablecoin payouts through standard 12-month loans.
The two services also differ in how collateral is managed. Liquidium uses protocol-managed lending pools and ckBTC, while Ledn uses centralised custody and permits limited re-posting of collateral to institutional funding partners or Ledn-managed financing vehicles under its custodied loan policy.
For borrowers, the choice can also depend on how they want to receive and use the funds. Liquidium provides crypto, including USDC and USDT, while Ledn can provide fiat or supported stablecoins. A fiat payout can be useful for expenses that need to be paid directly from a bank account, whereas Liquidium borrowers would need a separate service to convert stablecoins into traditional currency.
Interest rates are another point of difference. Liquidium’s rates vary with lending-pool utilisation. At approximately 8.40am EDT on September 17, 2026, its live markets showed a 4.217 per cent APY for USDC borrowing and 3.100 per cent for USDT borrowing. Ledn’s published rate table on the same date listed APRs ranging from 9.25 per cent to 11.49 per cent, depending on loan size and jurisdiction. The figures are snapshots rather than guaranteed rates for every borrower.
The repayment structures are also different. Liquidium does not set a fixed maturity date or monthly repayment schedule, although interest continues to accrue and the position must remain healthy. Borrowers repay in the asset they borrowed, with partial repayment available. Ledn’s standard loans run for 12 months and have no early repayment penalty, with repayment options including eligible stablecoins, bank transfers or, where available, the sale of collateral.
From January 1, 2027, Ledn is set to require accrued interest and fees to be cleared before a loan can be renewed or refinanced. Eligible principal can continue into another term if the relevant conditions are met, including location requirements and an LTV below 65 per cent.
Loan-to-value, or LTV, is another key consideration because a fall in Bitcoin’s value can push a loan towards liquidation. Liquidium’s live BTC market showed a maximum LTV of 65 per cent and a liquidation threshold of 74 per cent on September 17. Ledn generally starts standard loans at 50 per cent LTV, issues alerts at 70 and 75 per cent, and liquidates at 80 per cent.
Using a hypothetical $5,000 loan backed by $10,000 of Bitcoin, and ignoring interest and fees, the collateral value would need to fall to about $6,757 to reach Liquidium’s 74 per cent liquidation threshold. At Ledn’s 80 per cent threshold, it would fall to about $6,250. The starting LTV and other loan conditions affect the amount of room a borrower has before liquidation.
Liquidation can involve additional costs. Ledn applies a 0.50 per cent trade spread, while Liquidium’s BTC market lists a 5 per cent liquidator bonus paid through collateral under its liquidation rules. These figures operate through different mechanisms and should not be treated as equivalent fees.
Security and custody arrangements present another distinction. Liquidium uses smart contracts and distributed signing through ICP’s Chain Key infrastructure, with its cross-chain system using ckBTC backed 1:1 by Bitcoin. Funds supplied to its lending pools can become available to borrowers, creating smart-contract, infrastructure, price-feed and pool-liquidity risks.
Ledn’s model relies on company-controlled custody. Its policy allows limited collateral re-posting to institutional funding partners or Ledn-managed financing vehicles, while stating that neither Ledn nor those partners may lend that collateral out for interest. Ledn also publishes Proof-of-Reserves attestations, while Liquidium provides market parameters and contract information through its Insights platform.
The services differ in funding times too. Liquidium’s native Bitcoin funding process requires four Bitcoin confirmations, which can often take around 40 minutes, followed by processing and delivery. Ledn says stablecoin disbursements typically take minutes after verification, while bank-wire disbursements can take about 12 business hours, in addition to bank processing times.
Ultimately, the two models give borrowers different sets of conditions to consider. Liquidium provides wallet-based stablecoin borrowing with flexible repayment timing but variable rates and protocol-related risks. Ledn provides fiat or stablecoin proceeds, a defined 12-month term and a centralised lending relationship, alongside its custody and renewal requirements.
Borrowers should check current rates, eligibility, LTV requirements, fees and liquidation conditions before taking out a Bitcoin-backed loan, as these parameters can change.
Dear Reader,
Ledger Life is an independent platform dedicated to covering the Internet Computer (ICP) ecosystem and beyond. We focus on real stories, builder updates, project launches, and the quiet innovations that often get missed.
We’re not backed by sponsors. We rely on readers like you.
If you find value in what we publish—whether it’s deep dives into dApps, explainers on decentralised tech, or just keeping track of what’s moving in Web3—please consider making a donation. It helps us cover costs, stay consistent, and remain truly independent.
Your support goes a long way.
🧠 ICP Principal: ins6i-d53ug-zxmgh-qvum3-r3pvl-ufcvu-bdyon-ovzdy-d26k3-lgq2v-3qe
🧾 ICP Address: f8deb966878f8b83204b251d5d799e0345ea72b8e62e8cf9da8d8830e1b3b05f
Every contribution helps keep the lights on, the stories flowing, and the crypto clutter out.
Thank you for reading, sharing, and being part of this experiment in decentralised media.
—Team Ledger Life
Community Discussion