Categories: Bitcoin Latest News

Ledn Secures Industry First $50M Bitcoin-Backed Syndicated Loan from Sygnum

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.”

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