Ledn CEO: Bitcoin mortgages can accelerate capital flow

ChainCatcher news, Ledn CEO Adam Reeds, a company providing Bitcoin lending services, stated that Bitcoin-backed loans can significantly accelerate the flow of money and capital. Reeds explained that many Bitcoin holders are reluctant to sell BTC for liquidity, and traditional financial institutions typically do not accept Bitcoin as collateral, which leads to ineffective utilization of Bitcoin assets. By taking out loans with Bitcoin as collateral, holders can obtain fiat liquidity for business, consumption, real estate, or purchasing more BTC. Reeds noted that Bitcoin loans are efficient, allowing borrowers to secure financing within days, which is a significant advantage compared to the weeks or months processing time of traditional financial institutions. Furthermore, Reeds believes that the risk of using Bitcoin as collateral is lower than that of real estate or stock loans, as there is no GAAP risk. He also pointed out that Bitcoin-backed loans help address the issue of inadequate banking infrastructure in some regions, particularly in high-inflation countries like Argentina and Nigeria, providing fair financing opportunities for these areas.