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The cryptocurrency lending landscape has faced challenges and scrutiny, but companies like Ledn have worked to set a higher standard. Chief Sales Officer at Ledn , Mauricio Di Bartolomeo, and Chief Investment Officer John Glover recently reflected on their journey to implement world-class risk management practices and steer clear of the risky behaviors that plagued their competitors. They detailed how Ledn distinguished itself in the digital asset space by prioritizing robust frameworks and client safety.

Mauricio Di Bartolomeo explained how his initial skepticism about Bitcoin turned into a commitment to improving risk management within the crypto industry. "We were looking for someone to help us build a lending desk and instill world-class risk management policies," he shared, noting that when John Glover joined the company, Ledn was facing significant concentration risk.

John Glover, initially hired as Ledn’s Chief Risk Officer, described the industry's glaring lack of risk protocols. "When I joined, I saw that many competitors, like BlockFi and Celsius, had no proper credit underwriting or market risk measures in place. They were lending without reviewing financial statements and taking significant directional risks," he said.

Glover implemented stringent credit monitoring and diversified Ledn’s institutional client base to reduce risks. Reflecting on the infamous Three Arrows Capital, Glover shared, "They contacted us three times, but we refused to lend to them because they wouldn’t provide financial statements. When they warned, 'You’ll be sorry,' I knew the industry was in trouble—and we all saw what happened."

Ledn also steered clear of risky DeFi ventures and avoided the fallout from disasters like Luna and FTX. "We refused to put clients’ assets into DeFi or take market risks. Our yield is generated in kind. If someone deposits Bitcoin, we lend Bitcoin to generate Bitcoin yield," Glover said, emphasizing Ledn’s conservative approach.

Through disciplined risk management, Ledn protected its clients’ assets, even during the most turbulent industry crises. "We didn’t halt withdrawals or lose a single satoshi of client funds," Glover highlighted. "That’s what proper risk management does, and we’ve adopted some of the best practices from traditional finance to ensure safety and trust."

Ledn's commitment to conservative practices has set a benchmark for responsible cryptocurrency lending, proving that safeguarding clients’ assets can coexist with growth and innovation.