In a groundbreaking move for the cryptocurrency industry, Ledn, a leading digital lending platform, has secured a $50 million Bitcoin-backed syndicated loan from Sygnum, a Swiss digital asset banking group with approximately $4.5 billion in client assets. This historic transaction marks the industry’s first Syndicated BTC-backed loan and is set to fuel Ledn’s expansion in retail lending, offering clients enhanced opportunities to access capital using their Bitcoin holdings as collateral.
The collateral for the loan will be held in qualified custody, ensuring the highest levels of security and compliance with regulatory standards. Benedikt Koedel, Head of Credit and Lending at Sygnum, expressed excitement about supporting Ledn’s future growth and kick-starting a new market for institutional lenders and borrowers as the crypto ecosystem matures.
This loan between Ledn and Sygnum signifies the ongoing maturation of the Bitcoin industry and its shift towards fully regulated institutional-grade financial services. The transaction aims to build confidence among traditional financial participants in Bitcoin-collateralized lending, potentially unlocking substantial liquidity for the sector within the existing $1.38 trillion syndicated loan market.
Adam Reeds, CEO and Co-Founder of Ledn, emphasized the importance of working with Sygnum, a fully regulated Swiss bank, to set a new benchmark for transparency, counterparty quality, risk management practices, and institutional-grade lending standards. This collaboration aligns with Ledn’s commitment to client asset security and regulatory compliance, marking the beginning of a new era of transparency and professionalism in digital asset financial services.
