Ledn, a leading digital lending platform, has officially secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss digital asset banking group with ~$4.5 billion in client assets, according to a press release sent to Bitcoin Magazine.
Ledn and @sygnumofficial Just Made History! 🎉
Sygnum Bank issued the industry’s first Syndicated BTC-backed $50M (USD) Loan to Ledn
A giant leap for the industry and our clients! 🚀 pic.twitter.com/z8dVRD2ERt
— Ledn (@hodlwithLedn) August 20, 2024
The $50 million loan, syndicated among Sygnum’s institutional clients, will fuel Ledn’s expansion in retail lending, offering clients enhanced opportunities to access capital using their Bitcoin holdings as collateral. The collateral will be held in qualified custody, aiming to ensure the highest levels of security and compliance with regulatory standards.
“With the first Bitcoin-backed syndicated loan from a fully regulated bank, Sygnum is excited to support Ledn’s future growth and kick-start a new market for institutional lenders and borrowers as the crypto ecosystem matures,” said Benedikt Koedel, Head of Credit and Lending at Sygnum.
This loan between Ledn and Sygnum reflects the ongoing maturation of the Bitcoin industry and its shift towards having fully regulated institutional-grade financial services. The transaction is aimed to build confidence among traditional financial participants when it comes to Bitcoin-collateralized lending, potentially unlocking substantial liquidity for the sector around the existing $1.38 trillion syndicated loan market, stated the release.
“We’re proud to be working with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, robust risk management practices, and institutional-grade lending standards,” said Adam Reeds, CEO and Co-Founder of Ledn. “We believe 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.”
Read More[#item_full_content]Bitcoin Magazine – Bitcoin News, Articles and Expert Insights
The Bitcoin price recently achieved a monumental milestone, crossing the $100,000 threshold for the first…
Early in our thinking about the interaction between bitcoin and energy it became obvious to…
One bitcoin is worth $100,000 — a milestone that has <a href="https://www.coindesk.com/business/2024/12/05/bitcoin-at-100-k-industry-reaction" target="_blank">crypto OGs in…
By Omkar Godbole (All times ET unless indicated otherwise) You know how it feels when…
Bitcoin experienced extreme volatility yesterday after reaching a new all-time high of $104,088 on Wednesday.…
As Bitcoin finally soars above the long-awaited $100,000 milestone, Ethereum (ETH) attempts to break out…