Ledn says the bitcoin-backed consumer lending market could expand from roughly $3 billion today to as much as $1 trillion over the next 10 years. The projection comes from a new report arguing that demand for borrowing against digital assets is already strong, while actual usage remains far behind.
The report cites research by consumer insights firm Protocol Theory, which surveyed 1,244 cryptocurrency holders in the U.S. and Australia between February and March this year. According to the study, 88% of respondents said they would consider using a crypto-backed loan or credit product, yet only 14% currently do. Ledn described that spread as a 6-to-1 consideration-to-adoption gap.
Interest is high, but borrowing activity is still limited
Ledn argues that crypto-backed lending remains small compared with the size of global digital asset ownership. Data cited in the research put total cryptocurrency market capitalization at about $2.68 trillion as of May 2. Against that backdrop, the appeal of borrowing without selling a long-term crypto position is easy to see.
The report compares crypto-backed borrowing to securities-backed lending or home equity borrowing in traditional finance. The idea is simple: unlock liquidity while keeping exposure to the underlying asset. For bitcoin holders with long-term positions, that use case appears to matter more than product complexity.
Trust remains the biggest hurdle after the 2022 credit collapse
The sector is still dealing with the damage left by the 2022 crypto credit crisis. Major lenders including Celsius Network, Voyager Digital and BlockFi entered bankruptcy or restructuring after crypto prices fell sharply and liquidity dried up. Those failures erased billions of dollars in customer funds and badly weakened confidence in centralized crypto lending models, while regulators tightened scrutiny across the sector.
Ledn co-founder Mauricio Di Bartolomeo said the demand side is already in place, but the trust infrastructure borrowers need before taking action is still catching up. That theme runs through the report. It argues that awareness is not the main problem; confidence is.
Borrowers care more about reputation and safeguards than rates
Among respondents who have not borrowed, the most common concerns were crypto price volatility, liquidation risk and regulatory uncertainty tied to crypto-backed loans. The study also found that users place greater weight on platform reputation, transparency of loan terms, custody protections and risk management practices than on rates or product features when choosing a provider.
For context, Galaxy Research previously estimated that the broader crypto lending market reached an all-time high of $73.6 billion in the third quarter of 2025. Ledn’s report focuses more narrowly on consumer bitcoin-backed borrowing and says the real constraint on growth is not a lack of demand, but how quickly trust in the model can be rebuilt.