According to a press release sent to Bitcoin Magazine, leading digital lending platform Ledn has officially secured a $50 million syndicated loan backed by Bitcoin from Sygnum, a Swiss digital asset banking group with approximately $4.5 billion in client assets.
With Ledon Follow History Made! 🎉
Sygnum Bank has issued the industry’s first syndicated BTC-backed $50 million (USD) loan to Ledn.
A huge leap for our industry and our customers! 🚀 pic.twitter.com/z8dVRD2ERt
— Ledn (@hodlwithLedn) August 20, 2024
The $50 million loan, syndicated among Sygnum’s institutional clients, will accelerate Ledn’s expansion into retail lending and provide clients with more opportunities to access capital by using their Bitcoin holdings as collateral. Collateral will be held in accredited vaults aimed at ensuring the highest levels of security and compliance with regulatory standards.
“With this first bitcoin-secured syndicated loan by a fully regulated bank, Sygnum is excited to support Ledn’s future growth and launch a new marketplace for institutional lenders and borrowers as the cryptocurrency ecosystem matures,” said Benedict Cordell, head of credit and lending at Sygnum.
The loan between Ledn and Sygnum reflects the continued maturation of the bitcoin industry and its transition to fully regulated, institutional-grade financial services. The transaction builds the confidence of traditional financial participants in bitcoin-backed lending and has the potential to bring significant liquidity to the sector on the fringes of the existing $1.38 trillion syndicated loan market, the release said.
“We are proud to work with Sygnum, a fully regulated Swiss bank, to set a new benchmark in transparency, counterparty quality, robust risk management practices and institutional-grade lending standards,” said Adam Reed, 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 is fully aligned with our own long-standing commitment to the security of client assets and regulatory compliance.”
