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 approximately $4.5 billion in client assets, according to a press release sent to bitcoin Magazine.
<blockquote class="twitter-tweet”>
Ledn and twitter.com/sygnumofficial?ref_src=twsrc%5Etfw”>@sygnumoficial I just made history!
Sygnum Bank issued the first $50 million (USD) btc-backed syndicated loan to Ledn
A great step for the industry and our customers! image.twitter.com/z8dVRD2ERt
— Ledn (@hodlwithLedn) twitter.com/hodlwithLedn/status/1825869200637730972?ref_src=twsrc%5Etfw”>August 20, 2024
The $50 million loan, syndicated across Sygnum’s institutional clients, will boost Ledn’s expansion into the retail lending space, offering clients enhanced opportunities to access capital using their bitcoin holdings as collateral. The collateral will be held in qualified escrow, 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 pleased to support Ledn’s future growth and drive a new market for institutional lenders and borrowers as the crypto ecosystem matures,” said Benedikt Koedel, Head of Credit & Lending at Sygnum.
This loan between Ledn and Sygnum reflects the continued maturation of the bitcoin industry and its transition towards fully regulated institutional-grade financial services. The transaction aims to build trust among traditional financial participants when it comes to bitcoin-secured lending, which could unlock substantial liquidity for the sector around the existing $1.38 trillion syndicated loan market, the release stated.
“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 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 aligns perfectly with our long-standing commitment to client asset security and regulatory compliance.”
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