Ledn has launched a monthly Open Book Report intended to benchmark transparency as banks enter the bitcoin-backed loan market. The first report discloses $868 million in outstanding loans backed by 18,488 BTC and states that 100% of collateral is held in custody and verified by The Network Firm LLP. Ledn positions the report as a standardized, independent set of disclosures covering its BTC loan book, collateral levels and loan‑to‑value ratios, with ongoing monthly updates starting from the first release on 18 December.
What Ledn’s Open Book Report discloses
The Open Book Report provides standardized, independent information about Ledn’s BTC lending activity, focusing on the loan book, collateral amounts and loan‑to‑value (LTV) ratios. It lists concrete data points such as loan balances, BTC collateral and average LTV, presented in a format Ledn says is designed for comparability across lenders. By standardizing these fields, the report aims to make it easier for clients and counterparties to see the same categories of information month to month.
Key figures from the first report
- Total outstanding loans: $868 million.
- BTC collateral reported: 18,488 BTC.
- Custody status: 100% of collateral held in custody and verified by The Network Firm LLP.
Why Ledn launched the Open Book Report
Ledn says the initiative is intended to set an industry transparency benchmark as traditional banks expand into bitcoin-backed lending and related products. The company frames the report as a way to highlight risks similar to a 2022-style crisis and concerns around rehypothecation when collateral use is unclear. “If lenders do not have to disclose how they use client collateral, the clients become the leverage,” said John Glover, Ledn’s Chief Investment Officer, underlining the stated need for ongoing, real‑time disclosure; this context is relevant as institutions such as 14 leading banks develop bitcoin products.
Verification, governance and jurisdiction
The report notes that The Network Firm LLP, a U.S. certified public accounting firm, independently confirms 100% custody of the disclosed BTC collateral. Ledn also states it operates under Cayman Islands regulations while adhering to U.S. audit standards, which it presents as part of the governance and verification framework. Independent confirmation of custody is presented as a distinct element of the report intended to give counterparties and clients a verifiable data point when assessing custody and collateral status; this ties into broader institutional developments such as Wall Street integration.
Publication cadence and next steps for the market
The first Open Book Report was published on 18 December and Ledn says updates will follow each month. Ledn positions the monthly cadence as a path toward an industry transparency benchmark and as a way to shape disclosure expectations for banks and other entrants to crypto credit markets. How the wider market adopts similar disclosures will determine whether the report becomes a comparative standard over time.
Why this matters
For a miner with anywhere from one to a thousand devices in Russia, the report offers a clearer picture of how one large lender documents its BTC-backed loans and collateral custody. The figures and the third‑party custody verification give you explicit, repeatable data points to check when you consider lending, borrowing or pledging BTC as collateral. Even if you do not use Ledn, standardized monthly disclosures can raise expectations for transparency across other lenders and counterparties.
What to do?
- Read the monthly report before using a lender: confirm reported loan balances, BTC collateral and LTV presentation match your needs.
- Check custody verification statements and the named verifier (The Network Firm LLP) when assessing counterparty risk and contract terms.
- Compare reported LTVs and collateral policies across providers if you plan to pledge BTC; standardized disclosures make such comparisons easier.
- Keep your own records of collateral transfers and agreements, and review monthly updates for material changes in reported custody or loan book size.
- Maintain operational separation between mining revenue and collateral pledged, and review lender disclosure practices periodically.
Quote source: John Glover, Ledn’s Chief Investment Officer.
