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.
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.
How we cover each
Read our Coinbase loan review and Ledn review for the full detail. To see how Ledn's rate sits against the rest of the centralized market, check the BoB Bitcoin Loan Rate Index, and compare every US lender in our main comparison.