Ledn secures Sygnum’s first $50 million Bitcoin-backed syndicated loan

Ledn, a leading digital lending platform, has formally secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss digital asset banking group with around $4.5 billion in client assets, according to a press release sent to Bitcoin magazine.

Ledn and @sygnumofficial He just made history! 🎉

Sygnum Bank issued the industry’s first BTC-backed syndicated loan of $50 million (USD) to Ledn

A giant leap for the industry and our customers! 🚀 pic.twitter.com/z8dVRD2ERt

— Ledn (@hodlwithLedn) August 20, 2024

The $50 million loan, syndicated among Sygnum’s institutional clients, will fuel Ledn’s expansion into retail lending, providing clients with increased opportunities to access capital using their Bitcoin holdings as collateral. The guarantee will be held in qualified custody, with the aim of ensuring 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 launch a new market for institutional lenders and borrowers as the crypto ecosystem matures,” said Benedikt Koedel, Head Credit and Loan department at Sygnum.

This loan between Ledn and Sygnum reflects the continued maturation of the Bitcoin industry and its shift towards fully regulated institutional-level financial services. The transaction aims to build confidence among traditional financial participants in Bitcoin-backed lending, potentially unlocking substantial liquidity for the sector around the existing $1.38 trillion syndicated loan market, the statement said.

“We are proud to work with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, sound risk management practices and institutional lending standards,” said Adam Reeds, CEO and co-founder. by Ledn. “We believe this marks the beginning of a new era of transparency and professionalism in financial services for digital assets and aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”