The era of debanking the crypto industry may be over.
That’s according to Ledn CSO Mauricio Di Bartolomeo, who told Decrypt, “I don’t think banks are coming; I think they’re here,” referring to how major financial institutions are no longer hesitant to engage with crypto businesses.
Ledn is a huge success story when it comes to Bitcoin lending, having serviced over $6.5 billion in loans against the world’s largest crypto. But even a business of this scale felt the debanking pinch under the previous Biden administration.
In early 2023, U.S. regulators intensified scrutiny on banks servicing crypto firms, leading to the collapse of key industry banking partners like Silvergate and Signature Bank.
Widely referred to as Chokepoint 2.0, that wave of debanking allegedly forced even established firms like Ledn to navigate shifting financial relationships as traditional institutions pulled back from the sector.
“Thanks to our size when this all started, we were lucky,” Di Bartolomeo said. “We already had relationships of trust with several banks worldwide and so were able to move as needed. But smaller entrepreneurs were not so lucky and got left behind.”
Speaking about the company’s experience in Canada before Chokepoint 2.0, Mauicio said that they had bank accounts closed with no explanation, and when they enquired, they were simply told that it was in the terms of service.
He even struggled to open personal accounts and spoke of those close to him being shut down for transferring in from Coinbase or out to Kraken.
Since Ledn already had a strong compliance use case and was trading over £100 million (US $125.6 million) in funds, there were offers from banks in countries including France, Dubai, and even China.
“They saw how we worked and grew; they had no reason not to do business with us,” Di Bartolomeo said.
Speaking on how things have changed, he added: “The attitude that banks have taken towards this industry has changed overnight.” He went on to say: “Two years ago we had a hard time getting a bank account open, today our biggest funding partners for our loans are banks.”
The sentiment is positive as he tells Decrypt: “If I told you how many banks have been calling us to get started … it’s through the roof. Banks may ironically grow to become the biggest allies of these companies in the next three to four years.”
The future will likely see Bitcoin become an international reserve that levels the loans more fairly.
Where now, in his home country of Venezuela, mortgages can be taken with a pen stroke and what you can get for gold is vastly different to somewhere like Switzerland, Bitcoin can change that. Ledn loans at the same rate no matter where you are or who you are.
As these loans become more common and rates drop over the next three to four years he warns about other loan ‘companies’ cropping up.
“Time in the market beats timing the market every single time,” he said. “Be diligent and ask the right questions—don’t get carried away by a logo, or brand, or sponsorship. Look for a time-tested, values-driven solution before you use your Bitcoin for a loan.”
Edited by Sebastian Sinclair
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