Crypto lender Ledn gets $50M boost with Bitcoin-backed loan from Sygnum Crypto lender Ledn gets $50M boost with Bitcoin-backed loan from Sygnum
Ledn said the Bitcoin-backed loan will be used to bolster its retail lending operations.
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Updated: Aug. 20, 2024 at 1:52 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto lending platform Ledn said it secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss global crypto banking group, according to an Aug. 20 statement shared with CryptoSlate.
This industry-first loan will enhance Ledn’s retail lending operations, providing clients with flexible access to capital. The Bitcoin assets will serve as secure collateral, ensuring regulatory compliance.
Notably, Ledn’s retail lending division has seen notable growth this year. In Q2, the company processed $85 million in retail loans, up from $65.5 million in Q1. Despite this growth, institutional clients continue to dominate its business.
Adam Reeds, CEO and Co-Founder of Ledn, said:
“This marks the beginning of a new era of transparency and professionalism in digital asset financial services, and it aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”
Strengthening Bitcoin position
Ledn believes this loan will further solidify Bitcoin’s legitimacy as an asset class.
The company noted that this move sets a precedent, boosting confidence in the Bitcoin-collateralized lending market. It also offers traditional financial players access to liquidity in this sector.
Ledn’s Chief Investment Officer John Glover said the loan is a significant step in integrating crypto into mainstream finance. He noted that Ledn will use this liquidity to drive growth and offer secure, transparent financial products.
Benedikt Koedel, Sygnum’s Head of Credit and Lending, expressed excitement about supporting Ledn’s future growth. He highlighted that this pioneering Bitcoin-backed syndicated loan, issued by a fully regulated bank, could kick-start a new market for institutional lenders and borrowers as the crypto ecosystem evolves.
Further, Ledn emphasized that this partnership with Sygnum is consistent with its history of collaborating with leading traditional financial institutions. The company also hinted at plans to expand this relationship through future ventures.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ledn
Ledn is a financial services firm created for Bitcoin and other digital currencies that provides a range of loan, savings, and trading options to owners of digital currencies in more than 130 countries.