Both let you borrow against Bitcoin without selling, but they are built on opposite foundations. Coinbase's loan is a decentralized finance (DeFi) product with a Coinbase front end; Ledn is a centralized lender (CeFi) with a multi-year track record. The right one depends on what you value: a lower floating rate and speed, or US dollars with a custodian and a human to call.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; Ledn figures are verified weekly.
Dimension
Coinbase (DeFi)
Ledn (CeFi)
Model
DeFi (Morpho on Base)
CeFi (a company)
You receive
USDC, a stablecoin
US dollars
Rate
~5 to 6% variable, no ceiling
9.25 to 11.49%
Max LTV
~75% (liquidates at 86%)
50%
Custody
cbBTC in a Morpho market; BTC backing custodied by Coinbase
Qualified custodian, not re-lent
On a margin call
Automatic on-chain, no cure window
Defined cure window, human support
Funding speed
Near-instant
About 1 day
Identity check
Coinbase account
Required
Coinbase data is a snapshot (its rate floats); Ledn figures are verified weekly. Neither is a recommendation.
The core difference
Ledn holds your Bitcoin with a qualified custodian and lends you US dollars, with a defined cure window if your loan-to-value climbs too high. Coinbase converts your Bitcoin to cbBTC, supplies it to a Morpho market on Base, and lends you USDC, with liquidation enforced automatically by code. One is a company you trust; the other is a protocol plus Coinbase's custody of the wrapped-Bitcoin backing. Our CeFi vs DeFi guide covers why that distinction drives everything else.
Where they differ
Rate. Coinbase is usually cheaper on the headline number (recently around 5 to 6 percent, variable, no ceiling) than Ledn (around 9.25 to 11.49 percent). Coinbase's can rise with the market; Ledn's is steadier.
What you receive. Ledn pays US dollars. Coinbase pays USDC, a stablecoin you convert yourself.
Custody. Ledn uses a qualified custodian and does not re-lend your Bitcoin. Coinbase locks cbBTC in the Morpho market (not re-lent there), but the underlying Bitcoin is custodied by Coinbase. Read our rehypothecation explainer for why that matters.
On a margin call. Ledn gives you a cure window and a support line. Coinbase liquidates automatically on-chain at about 86 percent loan-to-value, with no guaranteed grace period.
Speed. Coinbase funds in about a minute; Ledn in about a day.
Who picks which
Lean Ledn if you want US dollars in your bank, a qualified custodian, a cure window, and a lender with a years-long record. Lean Coinbase if you want the lowest available rate and near-instant funding, you are comfortable holding USDC and managing automatic liquidation, and you already keep Bitcoin on Coinbase. Some borrowers use both for different needs.
On the headline rate, Coinbase is usually lower: its variable rate has recently sat around 5 to 6 percent, while Ledn's is roughly 9.25 to 11.49 percent. But Coinbase's rate floats with no ceiling and pays you USDC, while Ledn lends fixed-style US dollars. Compare the all-in cost and what you actually receive, not just the rate.
What is the main difference between Coinbase and Ledn?
Coinbase's loan is a DeFi product (your Bitcoin is wrapped to cbBTC and supplied to a Morpho market on Base) that pays a stablecoin and liquidates automatically on-chain. Ledn is a centralized lender that holds your Bitcoin with a qualified custodian, lends US dollars, and gives you a defined cure window before liquidation, with human support.
Which is safer, Coinbase or Ledn?
They carry different risks. Ledn concentrates counterparty risk in a company but uses a qualified custodian, does not re-lend collateral, and offers a cure window. Coinbase removes the single-company lending risk via Morpho but adds smart-contract and oracle risk plus reliance on Coinbase's custody of the Bitcoin backing cbBTC, and it liquidates automatically with no grace period.