Crypto lending platform Ledn said it has secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss global crypto banking group, according to an August 20 statement shared with CryptoSlate.
This industry-first loan will enhance Ledn’s retail lending business and provide customers with flexible access to capital. The Bitcoin assets will serve as secure collateral and ensure regulatory compliance.
Ledn’s retail lending division in particular has experienced remarkable growth this year. In the second quarter, the company processed $85 million in retail loans, up from $65.5 million in the first quarter. Despite this growth, institutional clients continue to dominate the 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 aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”
Strengthening the Bitcoin position
Ledn believes this loan will further strengthen Bitcoin’s legitimacy as an asset class.
The company noted that this move sets a precedent and increases confidence in the Bitcoin-backed credit market. It also provides traditional financial players with access to liquidity in this sector.
Ledn’s Chief Investment Officer John Glover said the loan is an important step in integrating crypto into the mainstream financial sector. He noted that Ledn will use this liquidity to fuel growth and offer safe, transparent financial products.
Benedikt Koedel, Head of Credit and Lending at Sygnum, expressed his enthusiasm about supporting Ledn’s future growth. He emphasized that this groundbreaking Bitcoin-backed syndicated loan, issued by a fully regulated bank, could spark a new market for institutional lenders and borrowers as the crypto ecosystem evolves.
Furthermore, Ledn emphasized that this partnership with Sygnum is consistent with its history of working with leading traditional financial institutions. The company also hinted at plans to expand this relationship through future ventures.