The BitcoinTaxes Podcast
Bitcoin and Crypto Loans
Guest: Adam Reeds, CEO and Co-Founder of Ledn
Adam Reeds, CEO and Co-Founder of the Canadian-based cryptocurrency loan and savings platform Ledn joins the show to discuss bitcoin-backed loans and savings accounts. Adam shares the tax-related benefits of taking out a bitcoin-backed loan and discusses other use-cases for crypto and bitcoin loans and savings accounts.
Episode Highlights & More Information
Bitcoin Collateral Loans and Cryptocurrency Savings Accounts (06:46)
Adam: We offer lending and savings products – really everything is on the mission to help more people save in Bitcoin and digital assets. We have a loan product wherever you can put up Bitcoin as collateral and access a US dollar (USD) loan available to be dispersed in USD to your bank account, or in stablecoins to an address of your choosing. We also have a product called Buy 2X or B2X for short – that is a loan to purchase additional Bitcoin. On the saving side, we have a Bitcoin savings account that currently pays 6.5% APY, and we have a USDC savings account that pays 10% APY.
Tax Advantages of Bitcoin Loans (09:45)
Adam: It’s tax deferral. If you have large capital gains built up in BTC and you have a lower adjusted cost basis by taking a loan…you can borrow against the value of that asset, perhaps invest it other assets that you have a strong conviction in, and then when the timing is right, repay that loan and then sell the Bitcoin at a later date.
Simplifying Crypto Borrowing and Lending (15:07)
Adam: It’s really just a simplifying that decision making process: You own Bitcoin. Did you want more of it? That’s B2X. Do you want to take out dollars because you have an expense or investment that you want to cover? That’s our borrow product. Do you want to just simply save [BTC] and earn an interest rate? That’s our save product.
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