Analysis: Bitcoin-backed lending may be poised to enter a trillion-dollar market, with a huge gap between potential demand and actual usage.

According to ME News, a new report from crypto lending platform Ledn, released on May 24th (UTC+8), indicates that the global Bitcoin-backed consumer lending market may grow nearly 300 times over the next decade, reaching $1 trillion, with a significant amount of untapped potential demand. The report cites a survey conducted by consumer research firm Protocol Theory of 1,244 cryptocurrency holders in the US and Australia, showing that approximately 88% of respondents were willing to consider using crypto-asset-backed loans or credit products, but currently only 14% actually use these services, creating a so-called "6:1 interest-to-adoption gap." Ledn estimates the current global Bitcoin-backed consumer lending market to be around $3 billion. In comparison, Galaxy Research previously estimated the entire crypto lending market to reach a peak of $73.6 billion in the third quarter of 2025. Ledn co-founder Mauricio Di Bartolomeo stated, "The demand-side issues have been resolved; what the industry truly lacks is the trust infrastructure that allows borrowers to build confidence." The survey shows that the core factor hindering users from adopting crypto-collateralized lending is not a lack of awareness, but rather concerns about price volatility, forced liquidation risks, and regulatory uncertainty. When choosing a lending platform, users prioritize platform reputation, custodial security, transparency, and risk management over simply interest rates. The report argues that crypto-collateralized lending is essentially similar to "stock-backed financing" or "home equity loans" in traditional finance, meaning users can obtain liquidity without selling long-term assets. (Source: ME)