Ledn forecasts that the consumer market for Bitcoin-backed loans could grow to as much as USD $1 trillion within five to ten years, based on new survey data from crypto holders in the United States and Australia.
The research, conducted by Protocol Theory, surveyed 1,244 cryptocurrency holders and found that 88% would consider borrowing against their digital assets, while 14% already do. Ledn argues that gap points to a large pool of potential users if confidence in the lending model improves.
It estimates the current consumer Bitcoin-backed loan market at about USD $3 billion. On that basis, its upper-end forecast implies roughly 300-fold growth and would put this segment alone well above the broader crypto lending market at its previous peak.
Galaxy Research previously measured the entire crypto lending market, including decentralised finance, centralised finance and institutional activity, at USD $73.6 billion at an all-time high in the third quarter of 2025. Ledn argues that consumer borrowing backed by Bitcoin could eventually reach about 13 times that level.
Confidence gap
The survey suggests the main barriers are less about awareness than trust. Among respondents who do not currently borrow against their crypto holdings, the most commonly cited concerns were crypto price volatility, liquidation risk and regulatory uncertainty around crypto-backed loans.
When choosing a lending platform, respondents ranked risk management practices, platform reputation, ease of use, clarity of terms and track record ahead of rates or product features. That suggests borrowers place more emphasis on safety and reliability than on price alone.
Existing borrowers appear to follow a familiar pattern from traditional finance, seeking access to cash without selling an asset they expect to hold for the long term.
The survey found that 72% of crypto holders agree that crypto-backed loans provide convenient access to funds without requiring them to sell their crypto. That mirrors the logic behind borrowing against property or listed securities, where investors use collateralised debt to avoid disposing of an asset.
"Bitcoin is now held by tens of millions of people, nearly 200 publicly listed companies, and more than a dozen governments. It is managed by regulated institutions and covered by major ratings agencies. And yet collateralised borrowing against it is still in the very early innings compared to any traditional asset class of this size," said Mauricio Di Bartolomeo, co-founder of Ledn.
"The demand side of the equation is solved. What's still catching up is the trust infrastructure that gives borrowers the confidence to act," Di Bartolomeo said.
Institutional signal
Ledn also pointed to signs of growing institutional acceptance in this part of the market. In February, it completed what it described as the first investment-grade Bitcoin-collateralised asset-backed security, a USD $200 million issuance with a senior tranche rated BBB- by S&P Global.
According to Ledn, those bonds have since traded about 5% tighter in the secondary market than at issuance, indicating investors are assigning more favourable pricing to the underlying credit risk.
That transaction matters because a rated, tradeable security tied to Bitcoin-backed lending offers a bridge between crypto collateral and mainstream debt investors. If repeated at scale, such structures could broaden the funding base available to lenders and help address some of the concerns retail borrowers raised in the survey.
Regional split
The findings also showed a difference between the two countries surveyed. Australian crypto holders were more likely than their American counterparts to borrow proactively as part of financial planning.
They were also more likely to compare lenders across platforms. Ledn attributed that to a more fragmented market in Australia, where no single platform has the same degree of dominance.
The wider backdrop is a maturing crypto market in which Bitcoin has become more widely held by retail investors, listed companies and some governments. Yet borrowing against those holdings remains a niche activity compared with more established forms of secured lending.
Founded in 2018, Ledn says it has serviced more than USD $10 billion in loans and offers products in more than 100 countries. It operates a Bitcoin-only model and does not rehypothecate customer assets.
For Ledn, the central question is not whether crypto holders understand borrowing against Bitcoin, but whether lenders can persuade them the risks are manageable. The survey suggests many are open to the idea, but most have yet to take the next step.