Quick Facts:
- Ledn experienced multiple bank account closures without prior notice.
- The company established relationships with crypto-friendly banks to ensure operational continuity.
- The tide is finally changing with the incoming of the new crypto-friendly regime in the US
Amid a regulatory storm that shuttered crypto banking giants like Silvergate and Signature, Ledn fought to stay afloat—navigating a financial system increasingly hostile to crypto. Despite these challenges, Ledn has managed to sustain operations by establishing relationships with crypto-friendly banks and diversifying its banking partnerships
Despite servicing over $6.5 billion in Bitcoin-backed loans, crypto lending platform Ledn found itself grappling with the fallout from ‘OperationChokepoint 2.0’ a period marked by widespread debanking of crypto firms under the Biden administration.
The crackdown began in early 2023, when U.S. regulators intensified scrutiny on banks providing services to cryptocurrency companies. The resulting turmoil contributed to the collapse of major industry banking partners, including Silvergate Bank and Signature Bank. This regulatory pressure forced even established players like Ledn to rapidly restructure their banking relationships as traditional institutions distanced themselves from the crypto sector.
In response, Ledn implemented a multi-bank strategy, diversifying its partnerships with crypto-friendly institutions and securing international banking options to maintain operational continuity.
Ledn’s Battle With Bank Closures
Mauricio Di Bartolomeo, co-founder of Ledn, sharing with Decrypt, narrated how the company endured multiple bank account closures even before the U.S. ‘Chokepoint 2.0’ crackdown, particularly in Canada, where financial institutions abruptly terminated their accounts without warning or clear explanations.
According to Di Bartolomeo, the closures extended beyond the company to his personal finances. He recounted how he struggled to open personal bank accounts and saw older accounts shut down for transactions involving exchanges like Coinbase and Kraken. When questioned, banks simply cited generic terms of service without providing further details.
Despite these setbacks, Ledn’s strong track record of compliance and high transaction volumes—exceeding $125.6 million (£100 million)—attracted interest from financial institutions in France, Dubai, and even China. These banks were willing to partner with Ledn based on the company’s solid operational standards.
“They saw how we worked and grew; they had no reason not to do business with us,” Di Bartolomeo remarked
Industry Shift with New Administration Policies
After years of battling account closures and financial exclusion, Ledn co-founder Mauricio Di Bartolomeo says the tide is finally turning. Continuing his conversation with Decrypt, he described a remarkable shift in the banking industry’s attitude toward crypto firms. He further revealed that traditional financial institutions are now actively seeking partnerships with Ledn.
“If I told you how many banks have been calling us to get started… it’s through the roof,” he shared.
Di Bartolomeo also expressed optimism about Bitcoin’s role in fostering financial equity. He envisions a future where Bitcoin could become an international reserve asset, leveling lending practices globally. He pointed out that while traditional banking systems offer vastly different mortgage terms in countries like Venezuela versus Switzerland, Ledn’s Bitcoin-backed loans remain consistent regardless of geography or customer profile.
