Ledn vs APX Lending: Crypto-Backed Loans in Canada

As Bitcoin and Ethereum continue to mature as long-term financial assets, more Canadians are looking beyond simple buy-and-hold (HODL) strategies. One option gaining traction is crypto-backed lending, which allows holders to borrow cash or stablecoins against their crypto without selling it. For investors who want liquidity while maintaining exposure to Bitcoin’s upside, this structure can be appealing.

In Canada, two of the most recognized names in this space are Ledn and APX Lending. Both platforms allow users to borrow against Bitcoin, and in APX’s case, Ethereum as well. Each company approaches crypto-backed loans with a strong emphasis on security, transparency, and regulatory alignment, though their structures and positioning differ in meaningful ways. This article explores how crypto-backed lending works, the benefits and risks, and how Ledn and APX Lending compare side by side.

What Is Crypto-Backed Lending?

Crypto-backed lending allows users to pledge digital assets such as Bitcoin as collateral in exchange for a loan denominated in fiat currency or stablecoins. Because the loan is secured by crypto, lenders do not require credit checks or income verification. Loan approval is based on collateral value and loan-to-value (LTV) ratios rather than credit history.

For Canadian users who actively buy Bitcoin in Canada, this model can provide liquidity without triggering a taxable disposition that might occur if Bitcoin were sold outright. Borrowers retain ownership exposure while accessing capital for personal expenses, business use, or portfolio management.

Source: APX Lending

Using Crypto-Backed Loans for Home Down Payments

One of the most practical real-world use cases for crypto-backed lending is funding a home down payment. Rather than selling Bitcoin and potentially triggering a taxable event, borrowers can collateralize their holdings and access fiat liquidity while maintaining long-term exposure.

In practice, this can work as follows: a borrower pledges Bitcoin as collateral and receives approximately 50% of its value through Ledn, or up to 60% through APX Lending, depending on loan structure and LTV selection. Once the loan proceeds are deposited into a bank account and seasoned for a sufficient period, often 30 days or more, traditional lenders may view those funds as acceptable for a mortgage down payment.

This approach can be especially relevant for long-term Bitcoin holders who have accumulated significant unrealized gains but prefer not to liquidate their position. While individual lender requirements vary and borrowers should always confirm eligibility with their mortgage provider, crypto-backed loans can act as a bridge between digital assets and traditional real estate financing.

Benefits of Using Crypto-Backed Lending Platforms

One of the primary advantages of crypto-backed loans is tax efficiency. Since borrowing does not constitute a sale, many users avoid realizing capital gains at the time of the loan. Another benefit is speed. Once collateral is deposited, funds are often released within hours or one business day.

These platforms also appeal to users who may not qualify for traditional credit or prefer not to engage with banks. There are no credit checks, no income verification, and no lengthy approval processes. For long-term Bitcoin holders, crypto-backed loans can act as a financial bridge without sacrificing exposure.

That said, users must understand liquidation risk. If the value of collateral falls and loan-to-value (LTV) thresholds are breached, borrowers may need to add collateral or repay part of the loan. Both Ledn and APX Lending provide tools to help users manage this risk. By offering these tools, the responsibility ultimately remains with the borrower to actively manage their position in order to avoid potential liquidation and loan termination.

Ledn Overview

Ledn was founded in Toronto in 2018 by Adam Reeds and Mauricio Di Bartolomeo and later moved its global headquarters to the Cayman Islands to operate under a clearer regulatory framework. Despite the relocation, Ledn maintains a strong operational presence in Canada and remains widely recognized as one of the earliest Bitcoin-backed lenders serving Canadian users.

Ledn focuses primarily on Bitcoin-backed loans and positions itself around simplicity and security. Their Bitcoin-backed loans typically carry a 12-month term, with an annual percentage rate (APR) currently around 11.9%, depending on market conditions. For many Canadian users, Ledn no longer applies a separate origination or administration fee, making the APR a clearer representation of the total borrowing cost.

A defining feature of Ledn’s offering is its custodial loan structure. The company states that collateral is not rehypothecated or lent out to generate yield. Assets are held in secure custody, primarily through BitGo, with AES-256 encryption and mandatory two-factor authentication. These measures are outlined across Ledn’s product and security documentation.

More recently, Ledn has attracted strategic investment from Tether, the issuer of USDT. While Ledn operates independently, this investment provides additional context around its capital backing and its positioning within the broader digital asset ecosystem. For borrowers, this may signal continued institutional interest in Bitcoin-backed lending as a mature financial product.

Ledn’s interface is designed for ease of use, with a loan calculator, straightforward application flow, and mobile access. Borrowers can repay early without penalties and may top up collateral to manage LTV during market volatility. Availability remains limited in certain provinces, including Quebec, New Brunswick, Nova Scotia, and Saskatchewan, due to regulatory clarity still evolving in those jurisdictions.

APX Lending Overview

APX Lending positions itself as a compliance-first crypto-backed lender operating under Canadian regulatory oversight.Founded by Andrei Poliakov, who also co-founded Coinberry, APX Lending is notable for being the first crypto-backed lender in Canada to receive exemptive relief from the Canadian Securities Administrators (CSA).

APX Lending offers loans backed by Bitcoin and Ethereum and places heavy emphasis on regulatory alignment. Similar to MyBTC.ca, the company is registered with FINTRAC in Canada and emphasizes regulatory compliance. APX Lending is also registered with FinCEN in the United States, while its governing law is based in Ontario. This framework may appeal to borrowers who prioritize Canadian jurisdiction and regulatory familiarity.

Loan disbursement at APX Lending is designed to be rapid. Once collateral is received, CAD wire transfers typically arrive within 3 to 24 hours, while USDC loans may be processed within approximately three hours during business hours. Like Ledn, APX Lending does not run credit checks and bases approvals on collateral and loan-to-value (LTV) ratios rather than credit history.

APX Lending also states that it does not rehypothecate collateral. Its platform provides tools for partial repayments, collateral withdrawals when LTV is healthy, and loan extensions. Monthly payment structures may apply depending on loan terms, which differs from Ledn’s no-payment-until-close model.

Comparing Ledn and APX Lending

Both Ledn and APX Lending serve a similar core use case: providing liquidity to crypto holders without requiring them to sell their assets. Each platform emphasizes security, transparency, and regulatory alignment, though they arrive there through different structures.

Ledn benefits from global scale and a longer operating history in Bitcoin lending. Its Cayman Islands headquarters allows it to operate across many jurisdictions, though that comes with regional product limitations within Canada. APX Lending operates squarely within Canadian regulatory frameworks, which may resonate with users seeking domestic oversight and Ontario-based governance.

In terms of assets supported, Ledn focuses on Bitcoin, while APX Lending supports both Bitcoin and Ethereum. Loan structures also differ. Ledn offers no monthly payments until loan closure, while APX Lending provides more flexible repayment options throughout the loan term.

One practical distinction between the two platforms is loan-to-value (LTV) flexibility. Ledn generally offers a more standardized structure, with Bitcoin-backed loans typically issued at approximately 50% LTV. This approach prioritizes simplicity and conservative risk management. APX Lending, by contrast, offers more flexibility depending on the loan structure, with LTV options that commonly range from roughly 20% up to 60%. This broader range may appeal to borrowers who want greater control over borrowing power, liquidation buffers, or interest cost trade-offs.

Security practices at both companies emphasize custody and non-rehypothecation. Each platform highlights compliance, KYC, AML screening, and sanctions checks as part of onboarding.

How Crypto-Backed Lending Fits into a Canadian Crypto Strategy

For Canadians who actively buy Bitcoin in Canada or hold long-term positions, crypto-backed lending can complement broader financial planning. It allows users to unlock liquidity while remaining exposed to Bitcoin’s price movements. When paired with a trusted on-ramp or off-ramp, borrowers can move seamlessly between crypto and fiat without relying on traditional lenders.

Platforms like Ledn and APX Lending demonstrate how crypto-backed how crypto-backed loans are evolving from niche products into structured financial tools. Each appeals to different preferences, whether that is global scale or Canadian regulatory grounding.

Is Crypto-Backed Lending the Right Fit for You?

Crypto-backed lending is not a one-size-fits-all solution. Market volatility, liquidation thresholds, and interest costs must be carefully considered. Ledn and APX Lending both offer credible, security-focused options for borrowers who understand these dynamics and value retaining crypto exposure. They both have Canadian roots, which may appeal to users who prefer to support Canadian-founded companies and local financial infrastructure.

As the Canadian digital asset landscape continues to mature, these platforms represent two distinct approaches to the same goal: enabling crypto holders to access liquidity without selling their Bitcoin or Ethereum. For users exploring advanced strategies beyond simply buying and holding, crypto-backed lending remains an option worth understanding.