Bitcoin Loan Comparison

Ledn vs. Coinbase

Ledn charges 9.25%–11.49% APR with a 2% origination fee (waived for US/Canada) using custodial (segregated). Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Ledn: 2026-09-02; Coinbase: 2026-08-28.

How do Ledn and Coinbase compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Ledn is 10.99% APR and Coinbase is 5.1%+ variable APR. Ledn: 12-month loan; published APR tier for the selected size. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Ledn charges a 2% origination fee (currently waived for US and Canada borrowers), and Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest.

Ledn vs. Coinbase: Feature-by-Feature Comparison

Ledn

Coinbase

Interest Rate (APR)

10.99%

5.1%+ variable

Pricing Basis

Loan size

Flat rate

Fees / Charges

$0 (waived for US/Canada)Ledn

2% processing fee

Max Starting LTV

50%

75%Coinbase

Margin Call Threshold

70% LTVLedn

None — direct liquidation

Liquidation Threshold

80% LTV

86% LTVCoinbase

Margin Call Window

Threshold-based

No margin-call window

Custody Model

Custodial (segregated)

Custodial (cbBTC on Morpho / Base)

Rehypothecation

Yes

NoCoinbase

Interest Payment

At maturity

Capitalized

Minimum Loan

$500

NoneCoinbase

Cost on a $250,000 Loan: Ledn vs. Coinbase

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Ledn pricing varies by loan size; Coinbase pricing varies by account. Actual offers can differ when those inputs change.

Loan Size	Ledn APR	Coinbase APR	Ledn Total Year-1 Cost	Coinbase Total Year-1 Cost	Savings
$250,000	10.99%	5.1%+ variable	$27,475	$18,341	Estimate only

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Ledn: $0 (waived for US/Canada) — excluded from the total for the stated waiver. Coinbase: 2% processing fee. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Ledn: 2026-09-02; Coinbase: 2026-08-28.

Custody and Collateral Security

Both Ledn and Coinbase use similar custody approaches: custodial (segregated) and custodial (cbBTC on Morpho / Base) respectively. Ledn uses custodial (segregated). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Ledn also rehypothecates deposited assets, meaning your collateral may be lent to third parties. Coinbase uses custodial (cbBTC on Morpho / Base). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

Ledn: High (Custodial)

•Custodial (segregated)
•Rehypothecation: Yes
•At-maturity interest payments
•2% origination waived for US/Canada.

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Margin Call and Liquidation: Ledn vs. Coinbase

Ledn triggers margin calls at 70% LTV and liquidates at 80% LTV. Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV.

Threshold	Ledn	Coinbase
Max Starting LTV	50%	75%
Margin Call	70% LTV	None — direct liquidation
Margin Call Window	Threshold-based	No margin-call window
Liquidation	80% LTV	86% LTV

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Ledn: 30.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (80% LTV). Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). Ledn provides a wider safety margin.

Which is better: Ledn or Coinbase?

Choosing between Ledn and Coinbase requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Ledn uses custodial (segregated) with 9.25%–11.49% APR, while Coinbase uses custodial (cbBTC on Morpho / Base) with 5.1%+ (variable) APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

Both platforms use similar custody approaches. Ledn operates via custodial (segregated), and Coinbase uses custodial (cbBTC on Morpho / Base). Ledn rehypothecates collateral.

Ledn is the better fit for borrowers who need smaller loans or instant access. Coinbase is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Ledn: 2% origination waived for US/Canada. No monthly payments; accrued interest and any applicable admin fee are due at maturity or refinance. Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025).

Frequently Asked Questions

Is Ledn or Coinbase cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $27,475 for Ledn and $18,341 for Coinbase. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Ledn's custody model compare to Coinbase?

Ledn uses custodial (segregated) and rehypothecates deposited assets. Coinbase uses custodial (cbBTC on Morpho / Base). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Ledn vs Coinbase?

Ledn's minimum loan is $500. Coinbase has no published minimum. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Ledn or Coinbase?

Ledn issues a margin call at 70% LTV (threshold-based, no fixed window) and liquidates at 80% LTV. Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 30 points at Ledn and 36 points at Coinbase.

Should I use Ledn or Coinbase for a Bitcoin-backed loan?

It depends on your priorities. Ledn (9.25%–11.49% APR, custodial (segregated), min $500) is better for borrowers who value custodial (segregated) and need smaller loan access. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

Other comparisons

Lygos vs Ledn Lygos vs SALT Lygos vs Nexo Lygos vs Arch Lygos vs Strike Lygos vs Figure Lygos vs Coinbase Lygos vs Lava

Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

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