Survey reveals 88% of U.S. and Australian Bitcoin holders would consider borrowing against assets, but only 14% do currently.
A growing number of Bitcoin holders are opting to borrow against their digital assets rather than sell, according to research by Bitcoin-backed lending platform Ledn. The study, conducted with Protocol Theory, surveyed 1,244 crypto holders in the U.S. and Australia, identifying a “collateral gap” where six times more holders are open to borrowing than those currently doing so.
Ledn, which has facilitated over $10 billion in loan originations since 2018, allows users to pledge Bitcoin as collateral for dollar loans without liquidating their holdings. The platform also offers savings accounts, a borrow-to-buy product, and recently issued an S&P-rated Bitcoin-backed asset-backed security with a BBB rating.
The survey found that 88% of respondents would consider borrowing against their Bitcoin, but only 14% have done so. The reluctance to sell stems from emotional attachment, as many view selling as relinquishing an asset held through market downturns like the 80% crashes in 2018 and 2022.