The lending platform, Ledn, traditionally known for its Bitcoin offerings, has recently broadened its range by introducing an Ethereum (ETH) yield product. This represents a response to their users’ growing demand for an alternative that bypasses the complexity and risks associated with manual staking of Ether. Furthermore, reports indicate that plans are underway to provide further ETH support to the entire suite of Ledn’s products in the near future.
A particularly noteworthy characteristic that sets Ledn’s new offering apart is its “ring-fenced” status. The framework of this setup only allows direct exposure of deposited ETH to the counterparty that profits from the staked amount. This arrangement acts as a safety net, ensuring users’ deposits remain unaffected if Ledn were to unexpectedly go bankrupt.
Simultaneously, Ledn has announced plans to launch a secondary stablecoin Growth Account, enabling users to deposit and earn interest on USDT tokens starting October 12. It should be noted, however, that these services will not be available to users based in the United States or Canada.
That said, it’s imperative to note that the sector is not without its perils. High-profile failures of significant cryptocurrency lending firms serve as concerning reminders of overextended and dubious lending practices posing a potential threat to the industry.
Next, Coinbase is making waves in the regulation debate, launching an ambitious campaign to seek a clearer regulatory framework for digital currencies. On September 27, Coinbase’s CEO, with forty crypto founders from across the US, visited Washington, D.C., intending to rally support for a new regulating protocol for digital currencies. This proposal had previously been approved by the Republican-led House Financial Services Committee and House Committee on Agriculture earlier in 2023.
Despite the enthusiasm, some are skeptical regarding the proposed rules’ penetration and impact, considering the ongoing federal budget disagreement and Senate’s increased efforts to curb crypto money laundering. This skepticism extends to wider public sentiment. While some community members have expressed support for Coinbase, others speculate that political interests may hinder blockchain adoption due its transparency, which could potentially hinder political exploitation of taxpayer money.
In conclusion, although companies like Ledn are expanding their products to meet user demand and platforms like Coinbase are campaigning for favourable regulations, there exists an undeniable sense of caution. This stems from the combination of high-profile crypto lending firms’ failures and well-founded doubts surrounding the feasibility of the proposed regulatory framework. The outcome of these initiatives remains yet to be determined.
Source: Cointelegraph
